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Going Green in China: Firms' Responses to Stricter Environmental Regulations / Haichao Fan, Joshua S. Graff Zivin, Zonglai Kou, Xueyue Liu, Huanhuan Wang.
- Format:
- Book
- Author/Creator:
- Fan, Haichao.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26540.
- NBER working paper series no. w26540
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Going Green in China
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2019.
- Summary:
- This paper examines the effect of stringent environmental regulations on firms' environmental practices, economic performance, and environmental innovation. Reducing COD levels by 10% relative to 2005 levels is an aim of the Chinese 11th Five-Year Plan. Using a difference-in-differences framework based on a comprehensive firm-level dataset, we find that more stringent environmental regulations faced by firms are positively associated with a greater probability of reducing COD emissions; also, there exists an evident heterogeneous effect across industries with different pollution intensities. Stricter environmental regulations also account for the sharp decline in firms' profits, capital, and labor. After executing a complete chain of tests of the underlying mechanisms, we find that firms rely more on recycling and abatement investment than on innovations when meeting environmental requirements.
- Notes:
- Print version record
- December 2019.
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