Government intervention, market development, and pollution emission efficiency: Evidence from China

The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental protection. Based on the theoretical mechanism analysis, this study empirically investigated the relationship between government intervention, market...

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Published inThe Science of the total environment Vol. 757; p. 143738
Main Authors Wang, Ke-Liang, Zhao, Bin, Ding, Li-Li, Miao, Zhuang
Format Journal Article
LanguageEnglish
Published Netherlands Elsevier B.V 25.02.2021
Subjects
China
economic development
environment
environmental protection
Government intervention
issues and policy
Market development
markets
Panel threshold effect model
pollution
Pollution emission efficiency
resource allocation
China
Market development
Panel threshold effect model
Government intervention
Pollution emission efficiency
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Abstract The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental protection. Based on the theoretical mechanism analysis, this study empirically investigated the relationship between government intervention, market development, and China's provincial pollution emission efficiency by using the static panel OLS, system generalized method of moments (SYS-GMM), and panel threshold effect model during the period 2000–2017. The results show that the impact of government intervention on China's provincial pollution emission efficiency shows a non-linear U-shaped curve relationship, and there is a positive correlation between market development and provincial pollution emission efficiency in China. Government intervention and market development are complementary, rather than a substitute for each other, in promoting China's provincial pollution emission efficiency. When government intervention is set as the threshold variable, the impact of government intervention on China's provincial pollution emission efficiency shows the feature of “promotes first, then inhibits.” However, when market development is set as the threshold variable, government intervention is only conducive to the improvement of China's provincial pollution emission efficiency at a moderate marketization level. Lastly, some policy implications related to the government and the market in enhancing China's provincial pollution emission efficiency are presented. [Display omitted] •The relationship between government intervention, market development and pollution emission efficiency is investigated from both theoretical and empirical perspectives.•Government intervention and market development are complementary in promoting China’s provincial pollution emission efficiency.•Panel threshold effect model is employed to explore the joint impact of government intervention, market development on China’s provincial pollution emission efficiency.
AbstractList The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental protection. Based on the theoretical mechanism analysis, this study empirically investigated the relationship between government intervention, market development, and China's provincial pollution emission efficiency by using the static panel OLS, system generalized method of moments (SYS-GMM), and panel threshold effect model during the period 2000-2017. The results show that the impact of government intervention on China's provincial pollution emission efficiency shows a non-linear U-shaped curve relationship, and there is a positive correlation between market development and provincial pollution emission efficiency in China. Government intervention and market development are complementary, rather than a substitute for each other, in promoting China's provincial pollution emission efficiency. When government intervention is set as the threshold variable, the impact of government intervention on China's provincial pollution emission efficiency shows the feature of "promotes first, then inhibits." However, when market development is set as the threshold variable, government intervention is only conducive to the improvement of China's provincial pollution emission efficiency at a moderate marketization level. Lastly, some policy implications related to the government and the market in enhancing China's provincial pollution emission efficiency are presented.
The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental protection. Based on the theoretical mechanism analysis, this study empirically investigated the relationship between government intervention, market development, and China's provincial pollution emission efficiency by using the static panel OLS, system generalized method of moments (SYS-GMM), and panel threshold effect model during the period 2000–2017. The results show that the impact of government intervention on China's provincial pollution emission efficiency shows a non-linear U-shaped curve relationship, and there is a positive correlation between market development and provincial pollution emission efficiency in China. Government intervention and market development are complementary, rather than a substitute for each other, in promoting China's provincial pollution emission efficiency. When government intervention is set as the threshold variable, the impact of government intervention on China's provincial pollution emission efficiency shows the feature of “promotes first, then inhibits.” However, when market development is set as the threshold variable, government intervention is only conducive to the improvement of China's provincial pollution emission efficiency at a moderate marketization level. Lastly, some policy implications related to the government and the market in enhancing China's provincial pollution emission efficiency are presented. [Display omitted] •The relationship between government intervention, market development and pollution emission efficiency is investigated from both theoretical and empirical perspectives.•Government intervention and market development are complementary in promoting China’s provincial pollution emission efficiency.•Panel threshold effect model is employed to explore the joint impact of government intervention, market development on China’s provincial pollution emission efficiency.
The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental protection. Based on the theoretical mechanism analysis, this study empirically investigated the relationship between government intervention, market development, and China's provincial pollution emission efficiency by using the static panel OLS, system generalized method of moments (SYS-GMM), and panel threshold effect model during the period 2000-2017. The results show that the impact of government intervention on China's provincial pollution emission efficiency shows a non-linear U-shaped curve relationship, and there is a positive correlation between market development and provincial pollution emission efficiency in China. Government intervention and market development are complementary, rather than a substitute for each other, in promoting China's provincial pollution emission efficiency. When government intervention is set as the threshold variable, the impact of government intervention on China's provincial pollution emission efficiency shows the feature of "promotes first, then inhibits." However, when market development is set as the threshold variable, government intervention is only conducive to the improvement of China's provincial pollution emission efficiency at a moderate marketization level. Lastly, some policy implications related to the government and the market in enhancing China's provincial pollution emission efficiency are presented.The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental protection. Based on the theoretical mechanism analysis, this study empirically investigated the relationship between government intervention, market development, and China's provincial pollution emission efficiency by using the static panel OLS, system generalized method of moments (SYS-GMM), and panel threshold effect model during the period 2000-2017. The results show that the impact of government intervention on China's provincial pollution emission efficiency shows a non-linear U-shaped curve relationship, and there is a positive correlation between market development and provincial pollution emission efficiency in China. Government intervention and market development are complementary, rather than a substitute for each other, in promoting China's provincial pollution emission efficiency. When government intervention is set as the threshold variable, the impact of government intervention on China's provincial pollution emission efficiency shows the feature of "promotes first, then inhibits." However, when market development is set as the threshold variable, government intervention is only conducive to the improvement of China's provincial pollution emission efficiency at a moderate marketization level. Lastly, some policy implications related to the government and the market in enhancing China's provincial pollution emission efficiency are presented.
ArticleNumber 143738
Author Wang, Ke-Liang
Miao, Zhuang
Zhao, Bin
Ding, Li-Li
Author_xml – sequence: 1
  givenname: Ke-Liang
  surname: Wang
  fullname: Wang, Ke-Liang
  email: klwang@163.com
  organization: School of Economics, Ocean University of China, Qingdao 266100, PR China
– sequence: 2
  givenname: Bin
  surname: Zhao
  fullname: Zhao, Bin
  email: zhaohao0816@163.com
  organization: School of Economics, Ocean University of China, Qingdao 266100, PR China
– sequence: 3
  givenname: Li-Li
  surname: Ding
  fullname: Ding, Li-Li
  organization: School of Economics, Ocean University of China, Qingdao 266100, PR China
– sequence: 4
  givenname: Zhuang
  surname: Miao
  fullname: Miao, Zhuang
  organization: China Western Economic Research Center, Southwestern University of Finance and Economics, Chengdu 611130, PR China
BackLink https://www.ncbi.nlm.nih.gov/pubmed/33223188$$D View this record in MEDLINE/PubMed
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Keywords Market development
Panel threshold effect model
Government intervention
Pollution emission efficiency
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Snippet The government and the market are the two main means for resource allocation, and both play important roles in economic development and environmental...
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SubjectTerms China
economic development
environment
environmental protection
Government intervention
issues and policy
Market development
markets
Panel threshold effect model
pollution
Pollution emission efficiency
resource allocation
Title Government intervention, market development, and pollution emission efficiency: Evidence from China
URI https://dx.doi.org/10.1016/j.scitotenv.2020.143738
https://www.ncbi.nlm.nih.gov/pubmed/33223188
https://www.proquest.com/docview/2463600341
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