ORIGINAL RESEARCH
Effect of the Intensity of Environmental
Regulation on Production Technology Progress
in 17 Industries: Evidence from China
Jinlin Liu, Maosheng Ran
School of Economics and Business Administration, Chongqing University,
Chongqing, 400030, China
Chongqing, 400030, China
Pol. J. Environ. Stud. 2014;23(6):2071–2081
KEYWORDS
intensity of environmental regulationproduction technological progress“U”-shaped relationshipdynamic panel data model
ABSTRACT
We demonstrate the relationship between the intensity of environmental regulation and the progress of
production technology. Using data from 17 industries in China during 2000-11, we estimate a dynamic model
of production technology progress. Our empirical results indicate that a simple “U”-shaped relationship
between the intensity of environmental regulation and industrial production technology progress does not
exist. Some industries show a significant “U”-shaped relationship while others exhibit an inverted “U”-shaped
relationship. Still others showed no significant relationship between production technology progress and the
intensity of environmental regulation. We also found that there is no relationship between the effect of environmental
regulation on industrial production technology and an industry's type of pollution.
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