Environmental Regulations and Industrial Performance Evidence from the Revision of Water Pollution Prevention and Control Law in China

Wei Yu


School of Economics & Management, Tongji University, Shanghai 200092 (China)

Qiang Chen


School of Economics & Management, Tongji University, Shanghai 200092 (China)


Abstract

Stringent environmental regulations are urgently needed as China’s environmental pollution is increasingly become an important issue both domestically and internationally. Based on a natural experiment of water pollution prevention and Control Law’s revision in 2008(WPPCL2008), this study investigates the effects of environmental regulatory policy on industry in China by using the industrial sectors’ data from 2003-2011. The results show that the WPPCL2008 significantly increases the total labor productivity, but has no ROA-inducement effect for water pollution-intensive sectors. Furthermore, WPPCL2008 has an insignificant negative influence on employment level of the water pollution-intensive sectors. At the same time, this study provides evidence on the effectiveness of the current written environmental laws in China.


Keywords:

environmental regulations, water pollution prevention and control law, industrial performance, a differences-in-differences approach

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Published
2015-01-05

Cited by

Yu, W., & Chen, Q. (2015). Environmental Regulations and Industrial Performance Evidence from the Revision of Water Pollution Prevention and Control Law in China. Problemy Ekorozwoju, 10(1), 41–48. Retrieved from https://ph.pollub.pl/index.php/preko/article/view/4925

Authors

Wei Yu 

School of Economics & Management, Tongji University, Shanghai 200092 China

Authors

Qiang Chen 

School of Economics & Management, Tongji University, Shanghai 200092 China

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