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In the context of global low-carbon emission reduction, how to achieve green and high-quality development has become a major issue for the Communist Party of China (CPC) and the Chinese government recently. Based on the data of China's listed companies from 2013 to 2020, this paper uses Python to implement text analysis of annual reports, and explores the relationship between political acuity and carbon-efficiency synergies (CES) from the perspective of enterprise initiative. We found that (1) political acuity positively affects carbon-efficiency synergies. (2) Increased political acuity can reduce carbon emissions, but the effect on economic efficiency is not obvious. That is, low carbon takes the lead in raising the level of carbon-efficiency synergies. (3) Environmental regulations can positively regulate the relationship between political acuity and carbon-efficiency synergies. (4) Political acuity in southern China, carbon neutral and non-state-owned enterprises (NSOEs) will have a more pronounced effect on carbon-efficiency synergies. From the perspective of the root causes of political linkages, we find the synergies between formal and informal institutions, and the key factors for policy implementation. This paper is helpful for enterprises to improve the synergies of emission reduction and efficiency promotion, and has practical implications for the government to promote green and high-quality development. • Assess the value of the low-carbon economy from its political roots. • We build a carbon-efficiency synergy evaluation system. • Political acuity and formal institutions are synergistic. • The influence of political acuity on CES can be replicated. • This paper expands the technical approach to low-carbon research. [ABSTRACT FROM AUTHOR]

Climate change is considered one of the major systemic risks facing the world in the 21st century. To address climate change, China has adopted a series of climate policies, but the uncertainty brought about by frequent climate policy issuance has increased pressure on enterprises, which may not be conducive to enterprises reducing emissions. This paper uses data on 1211 listed companies on the A-share market in China from 2012 to 2022 to study the impact of climate policy uncertainty on enterprise pollutant emissions. The research findings show that climate policy uncertainty increases corporate pollution emissions; climate policy uncertainty mainly generates negative impacts on enterprise environmental regulation, social responsibility, and R&D investment, thereby negatively affecting enterprise emissions reduction. Further heterogeneity analysis shows that climate policy uncertainty in China has a more significant impact on non-state-owned enterprises, technology-intensive enterprises, lightly polluting enterprises, and enterprises in western regions. These findings emphasize the importance of enterprise social responsibility, environmental regulation, and R&D investment in enterprise emissions reduction and provide policy implications for Chinese enterprises to optimize their energy-saving and emission reduction strategies in the face of climate policy uncertainty. • We investigate the correlation between uncertainty in climate policy and the corporate pollution emissions. • We utilized an extensive dataset comprising publicly listed Chinese firms spanning the period from 2012 to 2022. • Climate policy uncertainty negatively impacts corporate environmental regulation, social responsibility, and R&D investment. [ABSTRACT FROM AUTHOR]

Exploring whether informal environmental regulations (INER) can achieve carbon reduction in the context of pollution reduction and carbon reduction, as well as how to achieve carbon reduction, can help solve the dual failures of the market and government in environmental protection. Based on the polycentric governance theory and considering the characteristics of social subject environmental participation, the Stackelberg game is used to demonstrate the impact mechanism of INER on CO 2. In addition, using the panel data of China's 30 provinces from 2003 to 2018, this paper validates the effectiveness of INER by Pooled Ordinary Least Square (POLS) and threshold panel model. Then, the mediating effect model is used to test the mechanism of INER's effect on carbon reduction. The results show that corruption is not conducive to CO 2 reduction. The reduction effect of INER on CO 2 exhibits heterogeneity with changes in other non-greenhouse gas pollutants. While INER effectively reduces local corruption, its more substantial indirect impact on CO 2 reduction is prominent when levels of other pollutants are lower. Comparative analysis reveals that there are still biased governance behaviors to cope with INER's pressure in some regions nowadays. The findings show that for countries facing the dual task of pollution control and carbon reduction, the key to leveraging the supervisory role of INER should be focused on mitigating information asymmetry caused by the characteristics of CO 2. Therefore, in the process of environmental protection, the public environmental participation system should be improved, and the process of disclosing polluters' carbon information should be accelerated. • Polluters may adopt strategic carbon reduction behaviors. • Other pollutants influence the impact of INER on CO 2. • When other pollutants are low, INER significantly reduce CO 2 by constraining corruption. • Some regions still have biased governance behaviors to cope with INER's pressure. [ABSTRACT FROM AUTHOR]

Our paper focuses on how firms strategically respond to environmental regulations on environmental actions. Given the greater discretion in environmental information disclosure and relaxed environmental regulations enforcement in China, we propose that firms tend to say more while do less to obtain environmental legitimacy, namely corporate environmental actions decoupling. Using a sample of 5422 Chinese firm-year observations over the period of 2012–2018, we document that stringent environmental regulations contribute to a significant inconsistency between environmental reporting and actual environmental performance. Moreover, we demonstrate that this inconsistency is exacerbated when firms possess greater bargaining power and fewer financial resources. Our paper not only advances the understanding of how firms navigate external regulations by examining the tradeoffs between symbolic and substantive actions, but also sheds light on factors influencing decoupling/greenwashing practices from the perspective of government-business relations in China, and potentially in other emerging economies. • Firms tend to say more while do less to obtain environmental legitimacy. • Greater bargaining power amplifies the disparity between reporting and performance. • Limited financial resources promote corporate environmental actions decoupling. • Legitimacy theory is more applicable to guide environmental practices in China. [ABSTRACT FROM AUTHOR]

Rapid developments in environmental infrastructure have contributed to significant improvements in green total factor productivity, but further investigation is required to provide a detailed assessment to understand the policy mechanisms involved. This paper analyzes environmental progress in China through MMQR, CCEMG, and AMG as empirical strategies for 30 provinces in China. Our empirical results reveal that energy optimization through renewable energy is the most effective channel to improve green total factor productivity, though it is not the only available option. Since environmental regulations, infrastructure development, and green technology innovation also directly impact energy efficiency, adopting these within policy channels will positively impact environmental sustainability. Our empirical approach helps suggest novel environmental policy suggestions. In particular, policymakers must introduce structural changes within energy developments to foster renewable energy. Furthermore, China must increase environmental spending to upgrade its energy infrastructure further and solve ecological issues. These insights offer valuable policy guidance for decision-makers in China and globally, aiming to foster economic and environmental sustainability and achieve zero-carbon transition goals. • The current study analyses the role of green factor productivity in zero carbon transition. • We use 30 chinese provincial datasets from 2005 to 2020. • Energy transition is the most effective channel to improve green total factor productivity. [ABSTRACT FROM AUTHOR]

Based on the unique perspective of local environmental regulations promulgated in Chinese prefecture-level cities from 2000 to 2018, this paper examines the impact of urban environmental legislation on green total factor energy efficiency (GTFEE). The results show that implementing environmental legislation significantly improves local GTFEE , with comprehensive protection regulations contributing to local energy efficiency improvements, while the impact of pollution prevention regulations is insignificant. This conclusion remains robust to multiple scenarios. Potential mechanisms through which environmental legislation can guide urban green transition include the industrial upgrading effect represented by "clean industry development" and "polluting industry exit", as well as the technical innovation effect achieved through "new technology generation" and "old technology upgrading". Furthermore, environmental legislation with a higher degree of regulatory effectiveness has a greater potential for energy saving. Environmental legislation has a more significant impact on improving GTFEE in cities in non-old industrial bases, with less frequent turnover of officials, and in central and western regions in China. This study evaluates the positive impact of urban environmental legislation on GTFEE , aiming to advancing the rule of law in local environmental pollution governance and thereby promote urban green transition. • Use a Difference-in-Differences model to explore the effect of urban environmental legislation. • Environmental legislation guides urban green transition development. • The impact of heterogeneous urban environmental regulations on green transition development. • Industrial upgrading and Technical innovation have positive mediating roles. • Environmental legislation policy has city attributes, official turnover and location heterogeneity. [ABSTRACT FROM AUTHOR]

The main factor behind green economic development is green technology innovation (GTI). Environmental regulation and green finance (GF), as important ways to promote ecological civilization construction, run through the entire procedure of GTI. The purpose of this study is to investigate the influence of heterogeneous environmental regulation on GTI and the moderating effect of GF on GTI from both theoretical and empirical perspectives, to provide useful ideas for China's economic reform path selection and environmental governance system optimization. This paper uses information from 30 provinces between 2002 and 2019, and a bidirectional fixed model was constructed. The results show that: First, regulatory environmental regulation (ER 1), legal environmental regulation (ER 2), and economic environmental regulation (ER 3) all have greatly boosted the degree of GTI in each province. Second, GF acts as a highly effective moderator between heterogeneous environmental regulation and GTI. Finally, this article investigates how GF can act as a moderator in various circumstances. The beneficial moderating effect of it is found to be more pronounced in inland areas, areas with weak spending on research and development, and areas with high energy consumption. These research results provide valuable references for accelerating the green development process in China. • Constructs environmental regulation indexes from regulatory, legal, and economic. • Heterogeneous environmental regulation promotes green technology innovation. • Green finance plays a positive moderating role. • The moderating effect of green finance varies greatly in different regions. [ABSTRACT FROM AUTHOR]

This paper examines the emission leakage by the regional environmental regulation applied in Beijing and its surrounding area. Using the unique firm-level daily emission data, we develop a novel model to estimate the size of immediate leakage through the price mechanism. Our empirics find that leakage offsets about 60% of the total amount of emission reduction in the regulated region and the aggregate emission reduction is less than two percent. We also use the iron and steel industry as an example to show how the prices of input and output factors respond to the regulation. [ABSTRACT FROM AUTHOR]

This paper examines the drivers of distribution of pollution-intensive enterprises (PIEs) at the intraurban level that are less studied. Employing the complete spatial database of PIEs obtained from the National Economic Census of 2004, 2008, and 2013, the paper analyses the spatial restructuring of PIEs within Foshan, China, a typical manufacturing city in transition. We find that the changing role of environmental regulation induced by the environmental policy regime transformation has resulted in the siting strategy shift of PIEs, and both the 'Pollution Haven Hypothesis' and the 'Porter Hypothesis' have been overly simplified in the research conducted at the regional or global level. Based on the Foshan case, we further conceptualize the pattern of spatial restructuring of PIEs that would help to understand the fast green economy transition taking place in Chinese cities, followed by some policy and research implications. • The relocation and drivers of polluting firms at a local level are studied. • The environmental policy regime shift leads to the siting strategy shift of firms. • Polluting firms initially seek a pollution haven before 2008. • New firms after 2008 site in areas with strict environmental regulation. • The local government motivation is more important in the Chinese context. [ABSTRACT FROM AUTHOR]

Policy interaction is an important way to deal with increasingly complex environmental problems. This paper examines the investment-related tax cuts and the policy interaction with environmental regulation on firms' emission reduction strategies. Taking China's value-added tax (VAT) reform as a quasi-natural experiment and considering the interaction with the emission reduction target policy, our difference-in-differences estimation shows that: the average effect of the VAT reform reduces firms' sulfur dioxide (SO 2) emission intensity by 16.6%, due to the adoption of emissions reduction strategies in the production processes; the interaction effect between the VAT reform and environmental regulation incentivizes firms to additionally reduce SO 2 emission intensity, due to the adoption of both production processes and end-of-pipe reduction strategies. Our findings are more evident for firms with tight financial constraints. Overall, this paper reveals the micro-mechanisms of how the tax policies incentivize firms to choose emission reduction strategies and highlights the importance of the interaction effects between environmental and non-environmental policies, thus providing implications for the policy mix of environmental regulation and tax-cut incentives to promote pollution reduction and improve business performance. [ABSTRACT FROM AUTHOR]

Green technology innovation (GTI) is an effective way to promote the green development of economy, and government environmental regulations are an important means to encourage enterprises to carry out GTI. Taking Chinese A-share listed enterprises from 2010 to 2019 as samples, this paper divides environmental regulations into three categories: command-based environmental regulation (ER 1), market-based environmental regulation (ER 2) and voluntary environmental regulation (ER 3), studies their impact on enterprise GTI, and discusses the joint effect of enterprise research and development (R&D) investment and government support from the perspective of internal and external linkage of enterprises. In addition, this paper also analyzes the compound effect and time effect of environmental regulation. The research conclusions are as follows: (1) From the perspective of policy types, both ER 1 and ER 2 could stimulate enterprises to carry out GTI, and the promotion effect of green utility model patents is slightly higher than that of green invention patents. ER 3 inhibits enterprise GTI. In addition, this paper finds that the effect of three environmental regulations acting at the same time is greater than that of one of them. (2) The mechanism analysis shows that the R&D investment of enterprise positively could moderate the relationship between ER 2 and green invention at the significance level of 5%, positively moderate the relationship between ER 2 and green utility model patent at the significance level of 1%, and negatively moderate the relationship between ER 3 and green utility model patent at the significance level of 5%. The government support could moderate the relationship between environmental regulation and green utility model patents at the significance level of 5% and 10%. (3) The effect analysis shows that the transformation rate of GTI in China needs to be improved. The three environmental regulations could have an effect on enterprise GTI in a short period, and ER 1 has the fastest effect. (4) Considering the differences in the level of economic development and resource endowments in various regions of China, this paper classifies the sample enterprises and finds that the impact of environmental regulation on enterprise GTI is heterogeneous in terms of location, ownership nature, factor density and industry type. The research results provide the important reference for the formulation and implementation of environmental regulation policies according to local conditions. • ER 1 and ER 2 could stimulate enterprise GTI. • The union effect of ER 1 , ER 2 , and ER 3 is better than one of them. • R&D positively moderates the relationship between ER 2 and GTI. • ER 1 has the fastest effect on GTI in three kinds of environmental regulations. • The effect of ER on GTI shows heterogeneity for different enterprise features. [ABSTRACT FROM AUTHOR]

Constructed on the total-factor analysis framework, this paper develops a comprehensive evaluation system and adopts the Super-SBM model to both analyze and enunciate the characteristics of tourism eco-efficiency in China during 2000–2017. This paper also identifies the determinants associated with spatial differentiation of tourism eco-efficiency by employing a novel geographical technique, namely the Geographical Detector Model. The results indicate that the tourism eco-efficiency exhibits great potential for growth. Besides, pure technical efficiency drives the optimized development of eco-efficiency. Also, there is significant spatial variations in eco-efficiency across different provinces and regions in China. Urbanization contributes to tourism eco-efficiency remarkably, followed by openness, technical level, economic scale, industrial structure, capital effect, environmental regulation, and tourism growth. The relational interrelations of tourism eco-efficiency determinants are the bi-enhancement and the nonlinear-enhancement interactions. The implications of research findings are discussed and may be applied to a multitude of corporate environmental-economic management scenarios. • An evaluation framework was developed to identify the macro external determinants that may affect tourism eco-efficiency. • Urbanization contributes to tourism eco-efficiency remarkably. • The relational interrelations of tourism eco-efficiency determinants are the bi-enhancement and the nonlinear-enhancement. • Our results verify the rationality of the tourism-led growth hypothesis (TLGH) and the EKC hypothesis. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the impact on air pollution of China's 2017 policy banning waste imports. We exploit a difference-in-differences strategy combining the time variation and cross-prefecture variation in waste imports before the policy change. We find that prefectures that imported waste in the prepolicy period experienced greater air quality improvements after the policy shock. This effect is stronger in regions with loose environmental regulations and poor waste utilization capacity. Further investigation shows that reductions in both the burning of unrecyclable waste and the level of industrial production are channels through which the waste import ban reduced air pollution. [ABSTRACT FROM AUTHOR]

This paper assesses mental health responses to information on environmental risks. We exploit the progressive implementation of a national program in China that introduces more comprehensive air pollution monitoring and provides real-time air-pollution information to the public. The program leads to a sharp increase in public awareness and attention to air pollution issues and results in a large increase in the sensitivity of individual's mental health to changes in air quality, especially among those with more exposure to pollution information and those more susceptible to mental illnesses. Information of worsening air quality has a direct effect on mental health as a source of stressors and an indirect behavioral effect through reducing outdoor activities and social integration. Our findings shed light on the design and delivery of environmental information disclosure programs, especially for countries with pressing environmental threats. [ABSTRACT FROM AUTHOR]

Constructing and adopting a county-level panel dataset containing carbon emission (CO 2) and economic information between 2009 and 2017, this paper employs the continuous difference-in-differences (DID) model and is among the first to conduct an evaluation of the CO 2 reduction effect of China's emission trading scheme (ETS) pilot markets from the dual perspectives of price and scale. The empirical results emerge that the increase of transaction price and the expansion of transaction volume in ETS pilots have a persistent and significant influence on CO 2 reduction. Parallel to this, it is found the rising of transaction price in ETS can be effective on CO 2 reduction by improving the energy structure transition, however, optimization of industrial structure and the development of ICT might be the essential channels driven by the expansion of transaction volume. Last, this paper identifies the synergistic effect on different sorts of contaminants and find it is more substantial to those with the gas state. This paper implies that the policymakers should fully excavate the market-oriented environmental regulation tools from transaction price and volume perspective of views for the well achieving the climate ambitions of carbon peak and neutrality. • This article estimates the carbon emission reduction effect in of China's ETS pilots from the dual perspective of price and scale point of view. • The switch of China's carbon ETS regional pilots to national unified one can make the carbon emissions experience a wave of decline about 6.162%. • By estimating the possible synergistic effect on pollution of ETS market pilots, which find it is more significant to pollutants with gas phase. [ABSTRACT FROM AUTHOR]

The Chinese government has made great efforts in air pollutant reduction and carried out strict regulation policies. Since numerous air pollutants and CO 2 tend to have the same root, source, and process, recent studies argue that environmental regulation may also contribute to reducing carbon emissions. To investigate how various types of environmental regulations affect carbon emissions reduction, this paper constructs the spatial Durbin model and panel threshold model based on provincial panel data in China during 2003–2019. The main findings are as follows: First, China's net carbon emissions show a decreasing trend from east to west, displaying significant spatial agglomeration characteristics. Then, formal and informal environmental regulations have inverted U-shaped impacts on net carbon emissions. The "green paradox" and "reverse emission reduction" effects come into play at different stages. Finally, the threshold model reveals that with the improvement of regional technological innovation levels, the carbon-reducing effect of environmental regulation will increasingly come to the fore. These research findings are conducive to providing theoretical guidance for government to formulate and implement environmental regulation policies rationally. • Carbon sink effect is considered in the carbon emissions assessment framework. • The spatial spillover and threshold effects of environmental regulation is studied. • Environmental regulation has an inverted U-shaped impact on net carbon emissions. • Technological innovation level exerts a threshold effect between them. [ABSTRACT FROM AUTHOR]

This study utilizes the environmental tax reform in China as a quasi-natural experiment to investigate the effect of environmental taxes on income inequality. In January 2018, the Environmental Protection Tax Law (EPTL) came into effect in China, provinces began to collect environmental taxes in accordance with the law. We find that the reform contributes to lower within-firm wage inequality. The reform leads to declines in executive compensation and increases in worker wages. We further find that tax enforcement, environmental regulations, fiscal stress and tax competition vary the relationship between the reform and wage inequality. Heterogeneity analyses show that the effect is greater in non-state-owned firms, small firms, and firms with higher board shareholdings. Extensive robustness tests corroborate our inferences. This paper verifies the effectiveness of environmental regulation in enhancing social welfare, and is beneficial for assessing the welfare effects of environmental regulation more accurately. The findings can also help the government reduce obstacles in the implementation of environmental taxes, and further enhance the effectiveness of the EPTL. [Display omitted] • Environmental taxes contribute to lower income inequality. • The reform results in lower executive compensation and higher worker wages. • Tax enforcement varies the effect of environmental taxes. • Fiscal stress and tax competition influence the effectiveness of the reform. [ABSTRACT FROM AUTHOR]

A comprehensive understanding of the effect of environmental regulation policy synergy on carbon emissions is essential for the design and decision-making of the other policy combinations. In this paper, the panel data from 30 provinces in China during 2000–2019 are used as samples to investigate the heterogeneity of different policy combinations and compare the differences using a Bayesian non-parametric generalized additive quantile method. The research results imply that the environmental regulation policy synergy has a significant heterogeneous effect on carbon emissions on different levels. Specifically, the effect of environmental regulation policy synergy on carbon emissions has an inverted U-shape trend at the low quintiles, i.e., before the turning point, it shows a "green paradox" effect, and after the turning point, it shows an "emission reduction" effect. However, the effect of environmental regulation policy synergy on carbon emissions shows a significant N-shape trend at the high quintiles, i.e., before the second turning point, it shows an "emission reduction" effect, and after the second turning point, it shows a "green paradox" effect. Moreover, the effect of environmental regulation policy combinations on carbon emissions reduction has been found to vary significantly across regions. • Effect of environmental regulation policy synergy on carbon emissions is explored. • The mediating role of industrial structure is considered. • The effect of ERPS on CE has an inverted U-shape trend at the low quintiles, which shows a significant N-shape trend at the high quintiles. • Significant difference in the efficiency for implementation of ERPS in regions with different levels of CE. [ABSTRACT FROM AUTHOR]

The process of producing cement products from solid waste can increase the level of pollutants in the cement products. Therefore, it is very important to establish a pollution control standard for cement products to protect the environment and human health. This paper presents acceptance limits for the availability of heavy metals in cement products which have been produced from solid wastes and explains how the limits have been calculated. The approach and method used to formulate these criteria were based on EN 12920. The typical exposure scenarios used in this paper involve concrete being used for drinking water supply pipelines and concrete pavements and are based on an analysis of typical applications of cement in China, and the potential for contact with water. The parameters of a tank test which was based on NEN 7375 were set in accordance with the environmental conditions of typical scenarios in China. Mechanisms controlling the release of heavy metals in concrete and a model for that release were obtained using the leaching test. Finally, based on acceptance criteria for drinking water and groundwater quality in China, limit values for the availability of heavy metals in concrete were calculated. [Copyright &y& Elsevier]

To abate the severe air pollution, the Chinese government released the Action Plan of Air Pollution Prevention and Control (APAPPC) in 2013. This paper regards the APAPPC as a quasi-experiment and uses the DID method to investigate the impact of environmental regulation on the growth of green total-factor productivity of China's industries. This article employs the non-radial directional distance function (NDDF) and the global Malmquist index to measure the total-factor carbon productivity of China's industries. Further regressions suggest that the implementation of the APAPPC has significantly promoted the growth of the total-factor carbon productivity in the air pollution-intensive industries, and its marginal effect has steadily increased with time. This result is still valid after using a series of counterfactual tests and robustness tests. The further mechanism study shows that the APAPPC has significantly promoted R&D investment, especially in instruments and equipment, which has effectively promoted technical efficiency and technological advancement. It indicates that stringent and well-designed environmental regulations should lead to a "win-win" situation of environmental improvement and economic development by encouraging enterprises to upgrade their technology and equipment. • This paper uses a typical case in China to demonstrate the porter's hypothesis. • This paper uses the DEA method to measure the total-factor carbon productivity of China's industries. • The Action Plan of Air Pollution Prevention and Control in China has significantly promoted the growth of total-factor carbon productivity. • The regulation promotes productivity by propelling enterprises to increase R&D investment and update their technical equipment. [ABSTRACT FROM AUTHOR]

Water rights trading is a market mechanism that promotes the conservation, protection and optimal allocation of water resources. This paper takes the water rights trading pilots' policy as a quasi-natural experiment, and then adopts the spatial difference-in-differences model to investigate the water-saving and wastewater-reducing effects of water rights trading pilots by using the panel data of 30 provinces in China from 2006 to 2019. The results indicate that water rights trading has good environmental governance effects on water-saving and wastewater-reducing in the pilot areas. However, water rights transactions are mainly concentrated within provinces, and there is no spatial spillover effect. Besides, the pilot policy has more long-term dynamic effects in reducing sewage discharge than water-saving due to rebound effect possibly. The optimization of the industrial structure and environmental regulation play important roles in the realization of the policy effects of the water rights trading pilots. An important implication is that water rights trading pilots are worthy of promotion throughout China in view of the policy effects, and China should focus on inter-regional market transactions and industrial structure transformation to promote the optimization of the water rights trading mechanism. • Take the water rights trading pilots' policy as a quasi-natural experiment in China. • Adopt the spatial difference-in-difference model with the panel data of 30 provinces. • Evaluate the water-saving and wastewater-reducing effects and exploit its drive mechanism. • Has good environmental governance effects on water-saving and wastewater-reducing in the pilot area. • The optimization of the industrial structure and environmental regulation are important mechanisms. [ABSTRACT FROM AUTHOR]

Research on the ability of environmental regulations to achieve an innovation-offset effect by increasing clean energy use is required. This study aims to verify this by analysing the impact of market-incentive environmental regulation on enterprises' clean energy consumption. Using China's sulfur dioxide (SO 2) emission trading system (ETS) for 2007 as a quasi-natural experiment, the difference-in-differences model and data obtained from the Chinese Industrial Enterprises Database and Chinese Industrial Enterprises Pollution Database were used to determine whether an ETS affects enterprises' clean energy consumption. The results show that an ETS encourages enterprises to utilise clean energy and has a significantly positive impact on enterprises' clean energy consumption. Moreover, this study finds that an ETS promotes clean energy consumption by improving the production of enterprises. This study verifies the rationality of China's SO 2 ETS design. • This paper is the first to examine the impact of emission trading system (ETS) on enterprises' clean energy consumption. • We adopt the difference-in-differences model in the empirical section. • The ETS increases enterprise's clean energy consumption. • The improvement of enterprises' production structure is an important mechanism. [ABSTRACT FROM AUTHOR]

Environmental regulation (ER) is regarded as an important driver of environmental improvement. Taking China's non-ferrous metals industry (NFMI) as a sample, this paper discusses the relationship between ER and energy environmental performance (EEPI) in two stages, and tests the effectiveness of the "strong" Porter hypothesis. In the first stage, this paper uses the global environment DEA to construct the competitiveness index, EEPI, which represents "green" development. In the second stage, we explore the relationship between two types of ER and EEPI by using the panel Tobit model and considers the non-linear characteristics of ER and regional heterogeneity. Moreover, a mechanism analysis is conducted. The results show that: (1) at a reasonable regulatory level, this study supports the "strong" Porter hypothesis in China's NFMI. (2) Technological innovation plays a mediating effect between environmental regulation and EEPI. (3) From a national perspective, there is a significant inverted U-shaped non-linear relationship between environmental expenditure and EEPI, and a significant U-shaped non-linear relationship between environmental investment and EEPI. (4) Regional samples present heterogeneous results between ER and EEPI. Based on the conclusions, we believe that environmental regulation policies should take into account regional differences and incorporate diversified green innovations to achieve sustainable development. • At a reasonable regulatory level, this study supports the "strong" Porter hypothesis. • 2. Take energy-environment performance index as the competitiveness indicator. • Significant inverted U-shaped relationship between environmental expenditure and EEPI. • Significant U-shaped relationship between environmental investment and EEPI. • Regional samples present obvious heterogeneous results. [ABSTRACT FROM AUTHOR]

This study investigates the impact of environmental regulations (ERs) and foreign direct investment (FDI) on the green total factor productivity (GTFP) of the industrial sectors in 30 provinces in China by controlling human capital, technological innovation, energy structure, degree of opening up, and ownership structure for the period of 2004–2017. This not only helps to explain the influence path of ERs and FDI on green economic growth, but also effectively measures the moderating effect of ERs on technology spillover from FDI. The purpose of this paper is to explore the relationship between ERs, FDI and industrial GTFP from the perspective of regional heterogeneity, focusing on studying how ERs regulate the impact of FDI on GTFP. By constructing an influence mechanism of ERs and FDI on industrial GTFP, this study employs the feasible generalized least squares (FGLS) model and dynamic generalized method of moments (GMM) model to analyze the effects of ERs, FDI and their cross-terms on GTFP. The empirical results show that (1) the relationship between ERs and GTFP is not linear, but "U"-shaped and China is still in the left half of the "U"-shaped curve; (2) FDI flowing into China has a "pollution heaven" effect on the GTFP in the eastern and central regions while a "pollution halo" effect on the GTFP in the western region; (3) the strengthening of ERs weakens the negative effect of FDI on GTFP and plays a role in "screening" foreign investment; and (4) the spatial heterogeneity could affect the synergistic effect between ERs and FDI. Therefore, it is necessary for China to consider a series of environmental policies to "screen" inward FDI to ensure its move to a green economy benefits its own sustainable development by contributing to the increase in GTFP. [Display omitted] • The influence mechanism of environmental regulation and FDI on GTFP is proposed. • Dynamic FGLS and GMM methods are used for empirical estimations. • Environmental regulations exhibit a significant U-shaped effect on GTFP. • FDI exerts a "pollution heaven" effect on GTFP in eastern and central China. • Environmental regulations weaken the restraining effect of FDI on GTFP. [ABSTRACT FROM AUTHOR]

Does it pay to be "greener" as a local official in China? In this paper, we examine the effect of local environment regulation outcomes, i.e., local pollution, on leaders' chances of promotion. This is an important question because only when the Chinese cadre evaluation system rewards local officials' green behaviors, these officials would move away from their past priority in promoting economic growth at all costs, so that the environmental crisis in China might be addressed. We collect party secretary data for Chinese counties between 2001 and 2014 to measure promotion patterns. We construct county-year SO2 and PM2.5 pollution measures using NASA satellite data. We adopt an instrumental variable approach to deal with potential endogeneity issues of the pollution variables: for both PM 2.5 and SO2, we use ventilation coefficient, i.e., the product of wind speed and mixing layer height, as the instrument. Our empirical analysis shows that for county party secretaries, those who are able to reduce air pollution are more likely to be promoted. We find similar results for county magistrates. However, we do not find evidence for this pollution-promotion link for prefecture and provincial party secretaries. [ABSTRACT FROM AUTHOR]

Chinese government adopted a new environmental program during "Eleventh Five-Year Plan" period. Whether this program can achieve its goal of pollution reduction and quality improvement for exports is of vital importance for China's sustainable development. This paper constructs a quasi-difference-in-difference (DID) framework to identify the effects of the new environmental policy on export product quality by using highly disaggregated trade transaction data at the product level. Empirical results show that the implementation of pollution reduction targets is negatively correlated with export product quality. This negative impact is more profound in western regions, capital-intensive industries, privately owned firms and firms exporting to countries which are not members of Organization for Economic Co-operation and Development group. In addition, our extended analysis shows that the negative effects can be mitigated through product switching within the firms. The major policy implication is that local governments should take proper measures to strengthen the effects of innovation offsets caused by environmental regulation and effectively utilize the induced effects of environmental regulation on product switching. The goal is to achieve a win-win outcome for environmental protection and improvement in export product quality. • Pollution reduction enforcement significantly reduces export product quality. • Innovation can be an offsetting force for this negative impact. • The negative effects can be mitigated through product switching within the firms. • There are variations across regions, sectors and ownership. • Environmental regulation should accommodate these differences. [ABSTRACT FROM AUTHOR]

China has witnessed a drop in the speed of its economic development from 14% to 6% since 2007. The literature has attributed "the miracle of China's economic growth" over the past four decades to the compatibility of political incentives and fiscal incentives. However, as the central government shifts its priorities from "development is the last word" to "lucid waters and lush mountains are invaluable assets", can local officials' political and financial incentives still achieve incentive compatibility? Theoretically and empirically, this paper examines the impact of the compatibility of political and financial incentives on local governments' environmental governance in different stages. We find that environmental performance has consistently been an important political promotion incentive for officials, especially after 2007. We also find that officials in cities with incentive compatibility have no promotion advantages over their opponents because incentive compatibility restrained the development of the manufacturing industry, leading to a suppression of the economic growth rate. Local governments sacrifice a certain economic growth rate – in other words, local fiscal revenue – in exchange for environmental quality improvements and adopt strategic actions to cater to the central government's new performance evaluation system, which focuses mainly on environmental protection assessment through strategic behavior. • There are dynamic roles of compatibility between political and financial incentives. • An equilibrium model can capture the change in central and local governments. • The incentive compatibility phenomenon has no promotion advantage for local officials. • Environmental performance may be achieved at the expense of the economic growth rate. [ABSTRACT FROM AUTHOR]

This paper used the panel data of various regions in China from 2007 to 2018 and constructs a green economic efficiency measurement index system. Following this, the super-efficient DEA model has been employed to measure the efficiency of China's green economy. Then, the Tobit model is used to verify the environmental regulation influence on efficiency of China's regional green economy extent and direction. The results show that: (1) in 2007–2018, the green economy efficiency level of China's eastern, central and western regions is on the rise, accompanied by more obvious spatial differences. The green economy efficiency basically shows the spatial differentiation characteristics of the highest in the eastern region and the lowest in the western region. (2) From the national perspective, environmental regulation influence on efficiency of green economy presents a "U" shaped curve that promotes and then suppresses. At the eastern and national levels, environmental regulation has the same characteristics for green economy efficiency, and both exhibit U-shaped curve characteristics. Whereas, in the central and western regions shows negative correlation. (3) From the perspective of control variables, there are significant differences in variables at the national and regional levels. Finally, the study concludes with some policy suggestion for future green development and the formulation of environmental regulations in China. • Measuring the Efficiency of China's Green Economy by Using Super Efficiency DEA Model. • Environmental regulations impact on green economy efficiency by the Tobit model. • Environmental regulation impact on green economy efficiency presents "U" process. • Environmental regulation impact on green economy efficiency difference in China. [ABSTRACT FROM AUTHOR]

For most developing countries, local government faces a trade-off between economic growth and environmental protection. The intentions towards having a better environment as the economy grows will trigger a shift in the priorities of local government from economy to environment at a certain level of economic development. To investigate the "pollute first, control later" path in China and how environmental regulation performs differently due to economic development, this paper develops a conceptual model to depict the nexus between economic growth and environmental improvement. A panel threshold model is estimated based on Chinese data from different spatial scales – 30 provinces and 105 environmental monitoring cities. The results validate the threshold of economic development of approximately CNY 90,000 GDP per capita, which represents the turning point for the local government priority change; such that only when it is exceeded does environmental regulation significantly reduce emissions. Until 2016, only 4 provincial districts and 35 prefecture-level cities have crossed the threshold, these being mostly in the more prosperous eastern coastal areas. The results emphasize the need to consider timeliness when evaluating the effectiveness of environmental regulation and highlight the importance of adopting differentiated governance. Moreover, the need to enhance the effectiveness of environmental regulation requires driving the change of local government's priority to the environment and strengthening the institutional capacity of environmental protection agencies. • A conceptual model of local government's goals of economic growth and environmental protection. • Panel threshold model to find the economic threshold of effective environmental regulation. • Environmental regulation is effective only if regional GDP per capita exceeds CNY 90,000. • Timeliness and differentiation should be considered for environmental governance. [ABSTRACT FROM AUTHOR]

Numerous studies have examined the correlation between economic growth and air pollution, but few focuses on the nexus between environmental regulation and <2.5 μm (PM 2.5) fine particle matter. Using Spatial Durbin Model (SDM) and Spatial Two-stage Least Squares (2SLS) methods to analyze 277 Chinese cities over the period 2002–2010, this paper finds inverted U-shaped relationships between PM 2.5 concentration and formal/informal environmental regulations for the whole and eastern and western regions. By removing the depression year of 2008, regulation effect on pollution strengthened, indicating that the main task for local governments in crisis is to avoid GDP decline rather than official promotion. Further, green technological innovation and industrial structure optimization induced by environmental regulation is shown to be beneficial for haze pollution mitigation. Some policy recommendations are proposed in conclusion. • The Spatial Models are used to examine the effect of regulation on the PM 2.5 of 277 Chinese cities during 2002–2010. • An inverted U-shaped relationship is found for the nexus. • Eastern and western China generally has an inverted U-shaped relationship. • Technical innovation and industrial structure are confirmed to be important mechanisms. [ABSTRACT FROM AUTHOR]