<p>Environmental governance serves as a strategic pathway for China's economic transformation. The pressing challenge lies in leveraging the advantages of heterogeneous environmental regulations as policy instruments to achieve a synergistic enhancement of environmental improvement and the quality of economic growth (QEG), which has emerged as a central focus in academic research. This study investigates whether heterogeneous environmental regulations improve QEG from the standpoint of resource reallocation by combining multiple econometric models with provincial panel data from China from 2007 to 2020. The primary findings are as follows: (1) Heterogeneous environmental regulations impact QEG differently. Command-and-control environmental regulations (CER) and market-based environmental regulations (MER) significantly enhance China's QEG, whereas voluntary environmental regulations (VER) have the opposite effect. (2) Resource misallocation significantly disturbs the process by which heterogeneous environmental regulations affect QEG. Capital misallocation (τK) and land misallocation (τN) weaken the positive effects of CER and MER but strengthen the negative effects of VER; conversely, labor misallocation (τL) strengthens the positive effects of CER and MER but weakens the negative effects of VER. (3) By mitigating τK, τL, and τN, CER and MER exert a positive resource reallocation effect that indirectly enhances China's QEG. However, there is no evidence that the VER has this advantage. Further analysis reveals that the key to realizing this effect lies in the capability of environmental regulations to effectively transform factor mobility. These findings provide significant policy implications for refining the top-level design of environmental management, advancing multi-stakeholder collaborative governance, and enhancing resource allocation efficiency.</p>

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Could heterogeneous environmental regulations improve the quality of economic growth? Evidence from resource reallocation in China

  • Tianhao Yang,
  • Guofeng Gu

摘要

Environmental governance serves as a strategic pathway for China's economic transformation. The pressing challenge lies in leveraging the advantages of heterogeneous environmental regulations as policy instruments to achieve a synergistic enhancement of environmental improvement and the quality of economic growth (QEG), which has emerged as a central focus in academic research. This study investigates whether heterogeneous environmental regulations improve QEG from the standpoint of resource reallocation by combining multiple econometric models with provincial panel data from China from 2007 to 2020. The primary findings are as follows: (1) Heterogeneous environmental regulations impact QEG differently. Command-and-control environmental regulations (CER) and market-based environmental regulations (MER) significantly enhance China's QEG, whereas voluntary environmental regulations (VER) have the opposite effect. (2) Resource misallocation significantly disturbs the process by which heterogeneous environmental regulations affect QEG. Capital misallocation (τK) and land misallocation (τN) weaken the positive effects of CER and MER but strengthen the negative effects of VER; conversely, labor misallocation (τL) strengthens the positive effects of CER and MER but weakens the negative effects of VER. (3) By mitigating τK, τL, and τN, CER and MER exert a positive resource reallocation effect that indirectly enhances China's QEG. However, there is no evidence that the VER has this advantage. Further analysis reveals that the key to realizing this effect lies in the capability of environmental regulations to effectively transform factor mobility. These findings provide significant policy implications for refining the top-level design of environmental management, advancing multi-stakeholder collaborative governance, and enhancing resource allocation efficiency.