REVIEW PAPER
The Impact of Environmental
Regulations on Energy-Environmental
Efficiency: Evidence from China
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1
Bauhinia Institute, Shenzhen, 518055, China
2
Business School, Wenzhou University, Wenzhou, 325035, China
3
School of Economics, Zhongnan University of Economics and Law, Wuhan, 430073, China
Submission date: 2024-11-09
Final revision date: 2025-05-20
Acceptance date: 2025-05-24
Online publication date: 2025-07-30
Corresponding author
Lei Shi
School of Economics, Zhongnan University of Economics and Law, Wuhan, 430073, China
KEYWORDS
TOPICS
ABSTRACT
Within the context of Carbon Peaking and Carbon Neutrality objectives, reducing carbon emissions
and improving energy-environmental efficiency have emerged as the primary concerns of China’s
environmental governance. It will become increasingly important to study how environmental regulation
can improve the environmental efficiency of energy. First of all, this study uses the non-radial distance
function method to measure the energy-environmental efficiency of 30 provinces in China from 2011 to
2020. Secondly, this study uses the generalized moment estimation model to test the relationship between
the two. Furthermore, in order to better clarify the transmission mechanism between environmental
regulation and energy environmental efficiency, this study uses the intermediary effect model to conduct
an empirical test. Finally, in order to explore the spatial distribution relationship of energy-environmental
efficiency, this study conducts an exploration based on the spatial regression model. It has been
observed that: (1) The average energy-environmental efficiency in China exhibits “high in the east and
low in the west” distribution characteristics, and the energy-environmental efficiency fluctuates steadily
all the time. (2) Environmental regulation can effectively enhance regional energy-environmental
efficiency. (3) Industrial upgrading and technological innovation are essential mediating mechanisms of
environmental regulation for energy-environmental efficiency. (4) The energy-environmental efficiency
of each province has a significant positive spillover effect. Environmental regulation not only plays
a significant role in promoting regional energy and environmental efficiency, but also plays a positive
role in promoting energy and environmental efficiency in neighboring areas. Consequently, this
study puts forward specific suggestions to improve China’s energy-environmental efficiency through
environmental regulations.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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