Preprint Article Version 2 Preserved in Portico This version is not peer-reviewed

Environmental Regulation and Green Productivity: Evidence of the Moderating Effect of Chinese Environmental Decentralization

Version 1 : Received: 8 October 2020 / Approved: 9 October 2020 / Online: 9 October 2020 (09:35:43 CEST)
Version 2 : Received: 25 November 2020 / Approved: 25 November 2020 / Online: 25 November 2020 (11:08:10 CET)

How to cite: Chen, Z.; Zhao, X. Environmental Regulation and Green Productivity: Evidence of the Moderating Effect of Chinese Environmental Decentralization. Preprints 2020, 2020100193 (doi: 10.20944/preprints202010.0193.v2). Chen, Z.; Zhao, X. Environmental Regulation and Green Productivity: Evidence of the Moderating Effect of Chinese Environmental Decentralization. Preprints 2020, 2020100193 (doi: 10.20944/preprints202010.0193.v2).

Abstract

Environmental decentralization (ED), or the allocation of environmental protection affairs and responsibilities among various administrative authorities, affects the effectiveness of environmental regulation in promoting green total factor productivity (GTFP). Based on panel data of 30 Chinese provinces from 2001 to 2015, this paper employs dynamic panel models to test the effects of environmental regulations (environmental protection investment, ENV; pollutant discharge fees, PDF) on GTFP, with or without being influenced by ED. Without the impact of ED, GTFP is significantly inhibited by ENV while significantly promoted by PDF. Considering the impact of ED, with the strengthening of ED, the negative effects of ENV on GTFP is significant; contrarily, the positive effects of PDF on GTFP is significant; improving provincial ED adds negative effects of ENV, while reduces the positive effects of PDF; increasing prefectural ED reduces negative effects of ENV; expanding county-level ED adds the positive effects of PDF. Therefore, to boost GTFP growth, prefectural environmental protection authorities should have more autonomy in ENV, while the county-level should have more autonomy in PDF.

Subject Areas

Environmental regulation; green total factor productivity; Dynamic panel model; Environmental decentralization

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