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Realizing environmental protection and employment stability when facing strict environmental regulations is an essential issue of concern for many developing countries, including China. Based on a dataset of Chinese listed companies and a dataset of Chinese individual labor-force surveys, this paper uses an estimation technique pairing propensity score matching with a difference-in-differences estimator to examine the impact of the new Environmental Protection Law (EPL) on the supply and demand of labor at the micro level and the reallocation effect of interindustry labor at the macro level. The results show that the new EPL generated employment losses at the micro level. The policy reduces firms' labor demand by lowering firms' output and total investment expenditures and, in the process, does not stimulate firms' innovative behavior. Moreover, implementing the new EPL reduces the wage income of workers, which in turn reduces the labor supply. Conversely, at the macro level, the new EPL promotes the transfer of labor from polluting to cleaner industries, realizes the reallocation of labor between industries, and thus promotes the transformation and upgrading of regional industrial structure. [ABSTRACT FROM AUTHOR]

Carbon dioxide (CO 2) emissions and climate change risk have become constraints on global economic sustainable development. Environmental regulation (ER) is a key method for achieving synergy in CO 2 and pollution reduction in China. This paper is the first study to explore the effects of ER on CO 2 emissions by exploiting the National Environmental Protection 11th Five-Year Plan (NEP11-FYP). The implementation of the NEP11-FYP significantly decreases CO 2 emissions by 19.73% in key environmental cities relative to other cities. Heterogeneity analyses suggest that this negative impact is larger in western cities and cities with more pressure to reduce CO 2 emissions. Scale effects, structural effects, and technical effects might be three potential influencing channels through which ER contributes to the CO 2 reduction effect. In addition, the results of the spatial externality of the NEP11-FYP demonstrate a positive spillover effect in neighboring cities within a distance of 300 km and a negative spillover effect in cities more than 500 km away. Our empirical findings provide policy implications for implementing low-carbon transition strategies and reducing CO 2 emissions. [ABSTRACT FROM AUTHOR]

Environmental protection and sustainable development are now profoundly ingrained in the public consciousness in the modern era of the global green revolution. First, this paper uses an evolutionary game model to theoretically analyse the impact of environmental regulation and green finance on enterprises by dissecting the game behaviour between local governments, banks and enterprises. Then, we incorporate entrepreneurial spirit into the model to determine whether entrepreneurial spirit accelerates the achievement of green sustainability objectives. Environmental regulation and green finance are found to contribute substantially to the innovation of green technologies by local enterprises, while entrepreneurial spirit accelerates this process. Finally, we empirically test the findings based on a prefecture-level panel dataset from 2007 to 2020. We find that green finance has a positive impact in Central and Western cities of China, while Eastern cities are in greater need for government environmental regulation controls. For entrepreneurial spirit, the incentive effect of entrepreneurial spirit on the level of green technology innovation is more significant in Central and Western regions of China. This paper enriches the field of research on entrepreneurial spirit and regional green sustainable development by providing empirical evidence for the evaluation of environmental regulatory and green financing policy impacts. [ABSTRACT FROM AUTHOR]

Throughout the imminent water crisis era and stringent water environment management, enterprises play a vital role in environmental governance. However, there is seldom analysis on how the water environment regulation influences an enterprise's innovation due to data deficiency. Using our database from 2000 to 2022, we combine geographic information from water quality monitoring stations with the data on listed companies in China to pinpoint what distance firms are exposed to the monitoring stations. Results from a spatial regression discontinuity design along the geographic distances demonstrate that water environmental regulation has a significant positive impact on the quantity and quality of enterprise innovation. This paper found that it is primarily driven by the decreased usage of intermediate goods, rising industry profits from the exit of low-productivity firms, and enhanced enterprise research and development (R&D) investment. Furthermore, the positive impact is more pronounced for privately-owned firms, firms closer to suppliers, polluting firms, and politically unaffiliated firms. Our study offers scientifically valuable insights for emerging market countries in formulating effective water environmental regulation policies to incentivize firms to innovate in environmental protection. Additionally, it provides novel ideas on synergizing water environmental regulation and firm innovation to foster a mutually beneficial relationship between environmental protection and sustainable development. [ABSTRACT FROM AUTHOR]

Effective environmental governance in China is crucial for promoting global environmental governance initiatives. The government's environmental regulatory capacity (GERC) is a core metric reflecting the effectiveness of China's environmental governance. This paper aims to investigate the strength of China's GERC and empirically verify its impact on the coupling coordinated development of the economy-environment (CEE). We use a multiple indicators and multiple causes model (MIMIC) to measure the governmental environmental regulation capabilities of 30 provinces in China, from 2007 to 2018. Then, the econometric model is used to test the impact of the GERC on CEE. The results show that, although the GERC exhibits an overall upward trend, it is still at a low level for most regions. The GERC in different regions of China exhibits a certain gradient effect, with a weak polarization trend. The increase in the GERC of regions with high levels of economic development is significantly faster than that in regions with low levels of economic development. Moreover, the improvement in the GERC has not promoted coordinated development between the economy and the environment, which means that there is still a mutual "crowding out effect" between economic development and environmental protection in China. [Display omitted] • The Multiple Indicators and Multiple Causes model is used to measure government environmental regulation capability (GERC). • Although the GERC shows an overall upward trend, it is still at a low level for most regions. • The GERC in different regions has a certain gradient effect, showing a weak polarization trend. • There is still a mutual "crowding out effect" between economic development and environmental protection. [ABSTRACT FROM AUTHOR]

This paper discusses the main driving forces that influence the sustainable innovation of enterprises based on a three-dimensional framework at the organization level, individual level and system level. Using data from China's Innovation Survey, which is in line with the Community Innovation Survey（CIS）, this paper examines the behaviours and strategies of Chinese enterprises' sustainable innovation. The study finds that China's sustainable and innovative enterprises are generally large-scale, are long lasting, have good profitability and invest more in R&D and environmental protection. And the sustainable innovation of state-owned enterprises is significantly more than other enterprises. The primary purpose of enterprises engaged in sustainable innovation is to reduce environmental damage, but financial constraints are still an important obstacle for enterprises to overcome to carry out sustainable innovation. In addition, enterprises with more conservative senior executives and more political connections to government do not prefer sustainable innovation. The institutional pressure exerted by external environmental regulations and the cost constraints alleviated by government environmental protection subsidies are the key factors affecting enterprises' sustainable innovation. In conclusion, depicting the real situation of Chinese enterprises' sustainable innovation behaviour based on the survey framework and data of systematically identifying enterprises' innovation behaviour is beneficial to provide examples for developing countries related to sustainable innovation research. [ABSTRACT FROM AUTHOR]

• Performance-friendly regulation is illusion in China. • We document that investments and fees for environmental protection are mutually complementary in China. • We show that regulation in China leads to better firm performance but stimulate little for environment. Porter (1991) and follow-up scholars hypothesize that environmental regulation stimulates innovation to promote performance. As a complement to the existing literature, this paper reveals an ironic reality: performance-friendly regulation as a proxy for the "win–win" solution of environmental regulation is an illusion due to ineffective intensity for sustainability. With firm-level evidence from China, we measure the intensity of environmental regulation by a firm's investments for environmental protection (IEP) or fees for environmental protection (FEP). After identifying a positive causal effect on performance of IEP or FEP, we document that IEP and FEP are complementary and thus ineffective for sustainable development. We further document that the effects between IEP and FEP are mediated by performance insignificantly from an economic perspective, thereby revealing the incentive incompatibility of a firm in IEP and FEP. [ABSTRACT FROM AUTHOR]

In response to the national air pollution, China implemented the Clean Air Action policy from 2013 to 2017. The vigorous implementation of the policy has ensured that the policy targets have been achieved, and the haze problem has been effectively controlled. To evaluate the policy effect of environmental regulation on labor demand, this paper conducts policy evaluation by designing a quasi-natural experiment. Based on the variations of labor demand in the region dimension (272 cities) and sector dimension (5 major sectors) from 2008 to 2017, the results of the difference-in-difference-in-difference estimation show that: 1) The implementation of Clean Air Action has a significant negative impact on industrial employment. 2) The dynamic shocks are concentrated in the final stage of the policy. 3) Policy effects show heterogeneity in different regions. Since China is in the critical stage of economic transformation, the findings and enlightenment of this paper can be extended to other environmental and climate policies. • The Clean Air Action provides a quasi-natural experiment. • Environmental regulation has a negative impact on labor demand. • The shocks are mainly concentrated in the final stage. • The policy effect is insignificant in the central and western regions and resource-based cities. • The government should make a trade-off between economic growth and environmental protection. [ABSTRACT FROM AUTHOR]

• Public environmental concerns inhibit the market entry of polluting enterprises. • Public environmental concerns affect enterprise entry with heterogeneity. • Environmental regulation, investment and innovation are internal mechanisms. • Public environmental concerns can reduce the emission intensity of new enterprises. • Public environmental concern can encourage new enterprises to layout boundary. When constructing a multigovernance environment system, it is important to systematically study the impact of the public's environmental concern on the behavior of polluting firms. In relation to the market entry of polluting firms, this paper explores whether public concern for the environment can effectively reduce the likelihood of such firms entering the market to achieve control of pollution emissions at the source. Benchmark analysis shows that an increase in public environmental concern can inhibit the market entry of polluting firms in the region. Heterogeneity analysis shows that public environmental concerns exert a stronger effect on preventing the market entry of nonstate-owned firms and firms in developed regions than on other firm types. Mechanism analysis shows that improving the severity of environmental regulations, encouraging firms to make greater investments in environmental protection, and inducing firms to pursue additional environmental R&D innovation are effective mechanisms by which public environmental concern restrains the market entry of polluting firms in the region. Expansion analysis demonstrates that public concern about the environment can lessen the pollution emission intensity of new firms and promote certain new firms to carry out boundary layout. This research offers a scientific basis and policy reference that can serve to guide the public in actively participating in environmental governance. [ABSTRACT FROM AUTHOR]

• System GMM model was applied to test the mechanism of environmental regulation on the pollution-intensive industry transfer. • The transfer shows a general trend from the east to the central and western in China. • The central and the western have become "pollution paradise" for pollution-intensive industries. The pollution associated has intensified the environmental pressure within industrial transfer between the central and the western region in China. It's the key issue that how to use environmental regulations to promote the orderly pollution-intensive industries transfer and the optimization of industrial structure to realize the construction of ecological civilization during the transformation and upgrading of economic. By constructing the index of environmental regulation and industry transfer, this paper analyzed the spatial-temporal change of pollution-intensive industry transfer. We collected panel data of 30 provinces in China from 2004 to 2016 and studied the spatial differences of pollution-intensive industry transfer from the perspective of environmental regulation. This paper studied the path and mechanism of environmental regulation on the pollution-intensive industry transfer theoretically and empirically with System Generalized Method of Moments (GMM) model. The conclusions are as follows: Firstly, the pollution-intensive industry transfer in China shows a general trend from the east to the central and western regions. Secondly, there are obvious differences in environmental regulation between different regions. Thirdly, there are some differences in the impact of environmental regulation on industrial transfer. Therefore, the central and western regions should coordinate economic development and environmental protection when undertaking industrial transfer from the east, to optimize and upgrade industrial structure, and promote long-term economic development. [ABSTRACT FROM AUTHOR]

• We analysed the influencing factors of urban eco-efficiency in Western China. • The US-SBM model and spatial econometric models were used for 84 cities' data. • Urban eco-efficiency showed a fluctuating upward trend during 2004–2017. • Economic development and urbanization had U-shaped impact on urban eco-efficiency. • Four explanatory variables showed a positive impact on urban eco-efficiency. Improving eco-efficiency can promote sustainable development. This study first evaluated the urban eco-efficiency of 84 cities in Western China from 2004 to 2017 by the undesirable-super-slack-based measure (US-SBM) and analysed their spatiotemporal characteristics, and then investigated its influencing factors using spatial econometric models. The results indicated that the urban eco-efficiency in Western China was at a relatively low level and showed a fluctuating upward trend with the highest average value of 0.65; however, capital cities of Western China have improved their eco-efficiency rapidly. Furthermore, there were obvious spatial spill-over impacts of the urban eco-efficiency in Western China. This paper also found that both the economic development level and urbanization level have "U" shaped impacts on Western China's urban eco-efficiency, which decreases at first and then rises. Similarly, increasing the proportion of secondary industry promotes urban eco-efficiency, and FDI, trade activities, improved environmental regulations as well as technological innovation capabilities have a positive impact on urban eco-efficiency in Western China. This paper also put forward corresponding policy suggestions to promote Western China's urban eco-efficiency. The present study may be helpful for policy-makers to balance economic development and environmental protection in Western China. [ABSTRACT FROM AUTHOR]

The improvement of regional eco-efficiency is a significant approach to achieve coordinated development of China's economic development and environmental protection, and an effective environmental regulation system is a crucial driver to the improvement of regional eco-efficiency. Based on the panel data of China's 30 provinces during 2000–2013, this paper divides environmental regulation into three types: command-and-control regulation, market-based regulation and voluntary regulation. STIRPAT model is employed to test the effects of these three environmental regulations on eco-efficiency in the eastern, central and western regions of China. Research results turn out that: (1) in the eastern region, market-based and voluntary environmental regulation have a positive impact on eco-efficiency improvement while command-and-control environmental regulation has no significant impact, and (2) in the central region, command-and-control and market-based environmental regulation can promote eco-efficiency more significantly compared with voluntary environmental regulation, and (3) in the western region, command-and-control environmental regulation plays a positive role in eco-efficiency improvement whilst market-based and voluntary environmental regulation have no significant impacts. These findings indicate that the effects of different types of environmental regulation on eco-efficiency apparently differ in regions. Finally, to optimize and adjust the environmental regulation tools, policy recommendations targeting different regions are concluded. [ABSTRACT FROM AUTHOR]

In order to better combat environmental pollution, China promulgated the New China Environmental Protection Law (CNEPL) in 2015. Previous studies have focused more on the impact of CNEPL on the enterprise performance and green innovation, ignoring the relationship between CNEPL and industrial low-carbon development. This paper uses the implementation of CNEPL as a quasi-natural experiment and constructs a DID model to analyze whether and how government environmental regulation affect the carbon emissions intensity of heavy polluting industries. The results show that CNEPL implementation significantly reduces industrial carbon emissions intensity. Specifically, after the implementation of the CNEPL, the carbon emissions intensity of the heavy polluting industries decreased by 3.4% annually compared to non-heavily polluting industries. Heterogeneity analysis shows that the CNEPL has greater effects in industries with higher market competition degrees and larger average enterprises sizes. We further study influence mechanisms and find that re-allocation of resources, energy structure optimization, green technology innovation and energy efficiency improvement are significant influence mechanisms. Our findings provide policy insights for using government environmental regulation tools to achieve industrial carbon reduction target. • China's new environmental protection law (CNEPL) is considered as a quasi-natural experiment. • CNEPL reduces the carbon emissions intensity (CEI) of heavily polluting industries (HPIs). • Resource reallocation, green innovation, energy structure and efficiency improvement are main channels. • The effect of CNEPL on the CEI of HPIs is moderated by internal and external factors. [ABSTRACT FROM AUTHOR]

Given the degradation of the environment, balancing economic development with environmental protection is key to a green China. Therefore, it is of great significance to study the impacts of different environmental policies on China's pollution-intensive industries (PIIs). We look at the main types of environmental policies tools of China in areas of legal, economic and informal regulations, and select typical policies of each type for research. Based on the theoretical model about how environmental regulations affect the transfer decision of polluting enterprises, quantitative empirical tests are conducted in this paper to study the influences of environmental regulations on the transfer of PIIs by using provincial panel data from 2003 to 2016. It is found that: (1) All three types of environmental regulations have significant yet heterogeneous impacts on the transfer of PIIs. (2) With an emphasis on the nonlinear impact of environmental regulations on PIIs' transfer, we find that all the three types of environmental regulations exert inverted-N shaped nonlinear influences. The findings indicate that regions with ultra-stringent or excessively loose regulations are not attractive to polluting industries. However, appropriate environmental regulations stimulate enterprises to innovate, enhance market competitiveness, and increase production. (3) Between regions, spatially heterogeneous influences on PII's transfer are also found. Currently, levels of all types of environmental regulations are relatively low in China, which induce an initial negative correlation between policies and polluting enterprises. As a result, governments should continue to improve environmental regulations to promote a state of positive correlation, realizing a win-win result for environmental protection and economic development. ● Environmental regulations (ERs) affect pollution-intensive industries' (PIIs). ● The impact of ERs on PIIs' transfer is nonlinearly inverted-N shape. ● Multiple ERs have heterogeneous impacts on PIIs' transfer. ● Spatially heterogeneous influences of ERs on PIIs' transfer exist. ● Currently, the levels of all types of ERs are relatively low in China. [ABSTRACT FROM AUTHOR]

Innovation has been valued as a main driving force of social development, and the need for environmental protection has further raised green innovation development. Previous studies have confirmed that industrial agglomeration has an innovation spillover effect, and furthermore it varies with different agglomeration modes. However, the addition of environmental regulation could exert effects on the innovation spillover of industrial agglomeration. Based on Chinese provincial panel data from 2003 to 2017, this paper tested the effect of different agglomeration modes on green technology innovation (green process innovation and green product innovation) under environmental regulation. Research found that: when industrial agglomeration promotes green technology innovation, environmental regulation will inhibit agglomeration innovation; when industrial agglomeration hinders green technology innovation, environmental planning will promote agglomeration innovation. The regional difference of cluster development are obvious in China, and the effect of agglomeration innovation in different regions is also different. In the implementation of environmental regulation for each region, it is necessary to combine the current situation of cluster development to effectively promote green technology innovation. [ABSTRACT FROM AUTHOR]

Promoting the Extended Producer Responsibility (EPR) system in an all-round way has become an essential part of China's environmental regulations. A tripartite game model among the Environmental Protection Bureau (EPB) department, producers and the public is constructed based on the non-cooperative evolutionary game theory. Then this paper uses a system dynamics method to simulate and analyze the proposed game model. It is found that benefits of "strict regulation" strategy and financial subsidies subsidized by a superior EPB help to ease behavioral conflicts among game players, but their positive moderating impacts are scant. Effects of administrative fines and rectification due to the "relaxed regulation" strategy are unpredictable, such that the principle of moderation must be taken into account when rewarding or punishing an inferior EPB. As far as the producer is concerned, policy compensation paid by the EPB department has a positive effect on easing conflicts, but the impact of administrative penalties exerted on the producer who violates EPR system behind the scenes is negative. The profit-making characteristic of producers makes the influence of EPR system acceptance cost uncertain, which also implies that a suitable policy system is beneficial to changing producers' natural resistance to the EPR system. Noteworthy, effects of all the three factors on producers are lagging behind. Last but not least, under the premise of different environmental regulations, the public's expectations of environmental protection play exactly the opposite role. This study provides detailed and enlightening suggestions to different countries for constructing a comprehensive EPR policy system. • Fill a gap in the current research that neglects the public supervisory role. • Incorporate the time factor into the framework of scenario evolution analysis of EPR system. • Identify main influencing factors of players' behaviors and their interaction mechanisms. • Provide a new insight about EPR system -- tripartite game perspective. [ABSTRACT FROM AUTHOR]

Green innovation is the main force to drive China's intensive pollution industries (IPIs) into sustainable development. Improving green innovation efficiency (GIE) is an effective way to reach this goal. The correct approach to measuring IPIs' GIE and its influencing factors is a hot issue. Based on the panel data of China's 21 subdivided industries of IPIs over the period from 2011 to 2015, this paper applies the Super-Slack-Based Measurement (Super-SBM) and Tobit model to analyse IPIs' GIE and its influencing factors, respectively. The results show that IPIs' overall efficiency fluctuates around 0.67 in the first 4 years and increases to 0.776 in 2015, failing to be DEA-efficient; there are obvious gaps in GIE between the 21 industries, and the ferrous metal smelting and calendering industry has the weakest GIE. The regression results show that, government R&D support and environmental regulation have inverted U-shaped and U-shaped relationship with IPIs' GIE, respectively. Foreign market demand and market competition have significant positive and negative impacts on GIE, respectively, but the impact of market openness is not significant. The results suggest that (1) Chinese government should increase R&D support for IPIs, especially for those with low GIE, and strengthen supervision of the use of government R&D funds to avoid the crowding-out effect, (2) strengthen the intensity of environmental supervision and enforcement of environmental regulation policies, (3) improve environmental protection standards and preferential policies for exportation at the same time, (4) promote industrial restructuring and improve the mechanism of resource and benefit sharing to promote the flow of innovative resources and diffusion of innovative achievements. • Supplementing the evaluation indexes of GIE to reflect the requirements of recycling, low-carbon development, cleanness. • The GIE of IPIs has been improved from 0.67 to 0.776 during 2011–2015, but still fail to be DEA-efficient. • GIE of different industries varies greatly, and the ferrous metal smelting and calendaring industry's GIE is the weakest. • Government R&D support and environmental regulation have inverted U–shaped and U-shaped relationship with GIE, respectively. • Foreign market demand and market competition have significant positive and negative impacts on GIE, respectively. [ABSTRACT FROM AUTHOR]

Environmental regulation has played an important role in energy conservation and emissions reduction. In the context of a worsening environment, the Chinese government has realized the disadvantages of extensive development and has launched a full range of actions for energy-intensive and heavy-polluting industrial sectors, which are called "low-hanging fruits." However, this principle has challenges, such as bottlenecks in emissions reduction and development restrictions in certain sectors. To solve these problems, this paper divides 37 industries into heavy-, middle-, and low-polluting industrial sectors according to a pollution intensive index. Subsequently, three types of environmental regulation measurements (mandatory control environmental regulation, market incentive environmental regulation, and voluntary compliance environmental regulation) are applied to verify the heterogeneous effects of environmental regulations on the green total factor productivity. In this study, super-epsilon-based measure model and global Malmquist-Luenberger index are used to calculate the green total factor productivity of these industries. Thus, a better understanding of environmental regulations in regards to polluting industrial sectors is provided. The results show that different types of environmental regulations exhibit heterogeneous effects on the green total factor productivities of different polluting industrial sectors. The relationship between the mandatory control environmental regulation/market incentive environmental regulation and the green total factor productivity for heavy-polluting industries is shown to be an inverse U shape that crosses an inflection point, indicating that the environmental regulation intensity of heavy-polluting industry is sufficient, perhaps even excessive. Notably, the relationship between the three environmental regulations and the middle-polluting industries all present a U shape, and the environmental regulation intensities are far away from the inflection point. In that regard, excessive regulation may lead to high operating costs and may burden low-polluting industrial sectors. In such cases, strengthening the environmental regulations for middle-polluting industries should be an efficient and reasonable way to achieve a win-win direction for both environmental protection and economic development. • "Low-hanging fruits" strategy that can get good results in short time has come to its dilemma. • Different environment regulations exhibit heterogeneous effects in different industries' GTFP. • A more reasonable combination of environmental regulations is proposed. • The middle polluting industrial sectors need more attention. [ABSTRACT FROM AUTHOR]

The promotion of the green transformation of the manufacturing industry has become the main means to achieve the dual goals of environmental protection and economic growth. Environmental regulation, as an environment governance tool, exerts an important impact on the green transformation of the manufacturing industry. Therefore, this paper focused on the influencing factors of green transformation of the manufacturing industry under environmental regulation. Based on survey data of 500 Chinese manufacturing enterprises (2017), the influencing factors of green transformation were studied by developing a targeted structural equation model. The main conclusions showed that (1) human capital, financing ability, technology innovation, and government behavior all exerted significant positive impact on green transformation performance in the manufacturing industry. (2) Environmental regulation, as a moderating variable, positively affected the green transformation in the manufacturing industry by acting on technology innovation and governmental behavior; however, it decreased the positive impact of financing ability on green transformation. (3) Environmental regulation was a reversal mechanism, which affected green transformation by influencing financing capacity, technology innovation, and governmental behavior of manufacturing enterprises. The study suggested that the government should consider the positive impact of these influencing factors, and design appropriate environmental regulation policies to promote the green transformation in the manufacturing industry to achieve economic green growth. [ABSTRACT FROM AUTHOR]