Does International Economic Integration Lead to a Cleaner Production in China?

Lin, Liguo; Moon, Jon Jungbien; Yin, Haitao

doi:10.1111/poms.12087

Cited by 40 publications

(18 citation statements)

References 49 publications

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“…Thus, we expected a negative sign on the variable of fixed investment. (4) A large body of literature has documented the impact of ownership on corporate environmental decisions (King & Lenox, ; Lin, Moon, & Yin, ; Wang & Jin, ). We classified firms into private firms, state‐owned enterprises, foreign‐ or HMT(Hong Kong, Macau, and Taiwan)‐invested firms, and others, denoted in the analysis as Private , SOE , FHMT and Other , respectively.…”

Section: Research Methods and Datamentioning

confidence: 99%

“…Zeng and Eastin () have argued that foreign direct investment (FDI) from developed countries to developing countries often flows in accompanied by higher environmental standards and could serve as a “transmission belt” that introduces advanced environmental management and technology, thereby benefiting environments in the developing world. In their study of industrial companies in Shanghai, Lin, Moon, and Yin () provided empirical evidence showing that firms utilizing FDI are more likely to have better environmental performances because investors from the U.S. and Europe bring higher environmental standards from their home countries.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Money Talks: The Environmental Impact of China's Green Credit Policy

Sun¹,

Wang²,

Yin³

et al. 2019

J Policy Anal Manage

Self Cite

153

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This study examines the impact of China's green credit policy on the environment. In particular, we consider an initiative that requires all banks to base their loan decisions on corporate environmental performance. This is an important issue since it is globally gaining popularity to leverage bank loans as an avenue to enforce corporate environmental responsibility. Moreover, there are only a handful of empirical investigations in relation to the impacts of credit constraint on corporate environmental behaviors and strategies. This research also provides useful insights on how to enhance environmental regulation enforcement, using the Environmental Protection Bureau in partnership with local banks to exert a creditable threat of financial constraint on unfavorable environmental outcomes. Using the synthetic control method and difference‐in‐differences analysis, we find that this policy has significantly motivated firms, particularly those firms with a higher dependence on external financing, to reduce water pollution. We further discover that the policy compels firms to favor pollution prevention at the source instead of end‐of‐pipe treatments, since the policy imposes a long‐term credit constraint on pollution.

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Section: Research Methods and Datamentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Money Talks: The Environmental Impact of China's Green Credit Policy

Sun¹,

Wang²,

Yin³

et al. 2019

J Policy Anal Manage

Self Cite

153

View full text Add to dashboard Cite

show abstract

“…Thus, they tend to apply environmentally friendly technology even in countries where environmental standards are relatively week, which results in less pollutant discharge [37]. Therefore, SOEs and foreign-invested firms are less influenced by the command-control policy, which accumulates supportive evidence for the work of [38].…”

Section: Ownership Heterogeneitymentioning

confidence: 98%

Can China’s Government-Oriented Environmental Regulation Reduce Water Pollution? Evidence from Water Pollution Intensive Firms

2020

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China’s environmental regulation regime remains mainly government-oriented, consisting of the government environmental investment policy and the command–control policy. This paper first improves the traditional environment Copeland-Taylor model by including the above two types of government-oriented environment instruments. Then, based on a comprehensive firm-level dataset, we examine the effects of government-oriented environmental instruments on firms’ water pollutant emission abatement in the Yangtze River Economic zone. We find robust evidence of a significant decrease of 2.99% in chemical Oxygen Demand(COD) discharge and of 3.55% in ammonia nitrogen(NH3) discharge of firms in response to the government environmental investment policy, whereas the command–control instrument shows little effect on firms’ water pollutant emission reduction. Our results are robust when using alternative measurements for two types of environmental instruments. Additionally, we also find there exist heterogeneous effects across sub-samples: (1)comparing with large and medium firms, small and micro firms are more liable to be influenced by the two types of government-oriented environmental instruments; (2) the effect of two types of government-oriented environmental instruments is obviously significant in the intensive-water-pollution industry, whereas it is not obvious in other industries; (3) the effect of government environmental investment is obvious on state-owned enterprises and domestic joint ventures, whereas the command–control policy has effectively reduced the water pollutant discharge for domestic joint ventures and private firms. Finally, this study also presents some future policy implications.

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“…The institutional pressure of environmental self-regulation of multinational corporations stems from a complex legal environment, including supranational institutional pressure (Kostova and Zaheer, 1999). Customers and the public may be much less tolerant of foreign companies' misconduct than domestic companies, and in terms of bargaining power, foreign companies may be less bargaining power than domestic companies (Lin et al, 2014). Companies with different ownership structures have different bargaining power in enforcing environmental regulations, such as pollution charges and fines (Wang and Wheeler, 2003).…”

Section: Do the Effects Vary By Ownership?mentioning

confidence: 99%

Are exporters more environmentally friendly? A re‐appraisal that uses China’s micro‐data

Pei

Sturm

2020

World Economy

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Is a firm's ability to export an important determinant of environmental performance? To answer this question, we construct a unique micro dataset that merged two rich firm-level datasets for China for 2007. When combining this new dataset with well-received empirical specifications, we found that both export status and export intensity are associated with lower sulfur dioxide (SO 2) emissions intensity. In addition to the traditional OLS estimation, we verified this association by using the propensity score matching method. Our findings show that the baseline result still holds. In short, exporters are more environmentally friendly than non-exporters, which is in line with previous evidence reported for developed economies. We further discuss mechanisms that explain the observed pattern and show that exporters realize higher abatement efforts compared to non-exporters. This study complements the literature in terms of providing China's micro evidence on SO 2 abatement efforts. It also serves as a first step toward a better understanding of the impact of trade on the environment, especially in developing countries.

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Does International Economic Integration Lead to a Cleaner Production in China?

Cited by 40 publications

References 49 publications

Money Talks: The Environmental Impact of China's Green Credit Policy

Money Talks: The Environmental Impact of China's Green Credit Policy

Can China’s Government-Oriented Environmental Regulation Reduce Water Pollution? Evidence from Water Pollution Intensive Firms

Are exporters more environmentally friendly? A re‐appraisal that uses China’s micro‐data

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