Environmental regulation, technological innovation and energy consumption---a cross-region analysis in China

By Yulin Liu, Zhihui Li, Xingmin Yin. Journal of Cleaner Production, 2018

170 citations recorded by the source corpus.

Abstract China has encountered the environmental issues and energy pressures in the middle-income stage. Strengthening environmental regulation is a crucial measure to prevent environment deterioration and energy dilemma. This paper investigates the three types of environmental regulations on energy consumption using feasible generalized least squares method during 1997–2015 in direct and indirect path. The main conclusions are as follows. In the direct path, the economical and supervised types of environmental regulations have inhibited energy consumption whilst legal environmental regulation has no significant impact. As for indirect path, the "rebound effect" of energy is greater than the energy conservation generated by technological innovation, which is embodied as an inhibitory effect. The effects of environmental regulation display regional difference. The legal and supervised types of environmental regulations have significant "cost effect" and "rebound effect" on energy consumption in the entire samples. On the contrary, the economical environmental regulation shows the opposite sigh in eastern regions. The counterfactual simulation results show that the net effects of environmental regulations on energy consumption are negative, which is beneficial for relieving energy pressures. Based on the findings, this paper provides pertinent policy implications.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/9784bb79d7aa43c689ef6bcac2109f84cfef45aa

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Citations in the corpus

Environmental policy stringency, renewable energy consumption and CO2 emissions: Panel cointegration analysis for BRIICTS countries (2020, background): “Liu, Li, and Yin (2018) also found that environmental regulations were beneficial for relieving energy pressures in China.”