Tian, Y.; Wan, Q.; Tan, Y. Exploration on Inter-Relation of Environmental Regulation, Economic Structure, and Economic Growth: Provincial Evidence from China. Sustainability2023, 15, 248.
Tian, Y.; Wan, Q.; Tan, Y. Exploration on Inter-Relation of Environmental Regulation, Economic Structure, and Economic Growth: Provincial Evidence from China. Sustainability 2023, 15, 248.
Tian, Y.; Wan, Q.; Tan, Y. Exploration on Inter-Relation of Environmental Regulation, Economic Structure, and Economic Growth: Provincial Evidence from China. Sustainability2023, 15, 248.
Tian, Y.; Wan, Q.; Tan, Y. Exploration on Inter-Relation of Environmental Regulation, Economic Structure, and Economic Growth: Provincial Evidence from China. Sustainability 2023, 15, 248.
Abstract
The potential effect of implementing environmental regulations on economic growth is a controversial issue for a long time. As portrayed by Porter hypothesis, environmental regulations may impact on economic growth by reconstructing the economic structure. A number of previous literature proved the connections between the above three parties. With the intention of exploring the nature of this mechanism, it is important to understand the internal inter-relation of the three parties, requiring data from a large economy experiencing the transition in economic structure. By constructing a panel containing data from 30 Chinese provinces over 10 years (2008-2019), this paper investigate the dynamic inter-relation of the three parties by introducing PVAR model with Granger Test. Results reveal that environmental regulations give a “U” shaped impact to economic growth. In return, economic growth promotes the development of economy with a weakening strength. In addition, results also support the hypothesis that economic structure is the intermediate of economic growth and environmental regulations. There is a rooftop for the effect of economic structure to environmental regulations. The rooftop may signify the best optimization of primary structure.
Keywords
Environmental Regulations; Economic Structure; Economic Growth; PVAR Model
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
