Assessment of Technology vs Environmental Regulations in China Based on DEA Malmquist Model and Porter Hypothesis

LI-PING YUE, RUI YUAN, MEI-NI SHI

Abstract


Serious environmental pollution due to the economic boom in China has forced the government to implement environmental regulations. This paper examines the relationship between environmental regulations and technological development in different regions of China. Industry data from 1999 to 2012 using the DEA (Data Envelopment Analysis) - Malmquist productivity index were analyzed. It was found that total productivity growth is mainly caused by the change in technological progress. The environmental regulations of industry have a positive effect on technical progress at the national level. However, the relationship between environmental regulation and technological progress show significant differences at the regional level. Policy implications such as using government allowances and bank loans to import well educated staff, enhance production technologies, implement environmental solutions, and set up strict regulations are recommended for the policy makers.

Keywords


Environmental Regulations; Technology Innovations; Porter Hypothesis; Malmquist DEA index.


DOI
10.12783/dtssehs/icssd2017/19184

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