The effect of environmental regulation on external trade: empirical evidences from Chinese economy

With more voices calling for increasingly stringent environmental regulation, there is also concern about environmental regulations hindering the rapid growth of external trade in China. To identify the impact of environmental regulation on external trade, this research provided an empirical analysi...

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Bibliographic Details
Published inJournal of cleaner production Vol. 114; pp. 55 - 61
Main Authors Wang, Zhaohua, Zhang, Bin, Zeng, Hualin
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 15.02.2016
Subjects
China
Control
Determinants
Empirical analysis
Environmental impact
Environmental regulation
Exports
External trade
International trade
Least squares method
Regression
Upgrading
China, People's Rep
Determinants
External trade
Environmental regulation
China
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Summary:With more voices calling for increasingly stringent environmental regulation, there is also concern about environmental regulations hindering the rapid growth of external trade in China. To identify the impact of environmental regulation on external trade, this research provided an empirical analysis using international trade data from 1985 to 2010. Both feasible generalised least squares (FGLS) and seemingly unrelated regression (SUR) were employed herein. The Standard International Trade Classification (SITC) was introduced to reflect the different categories of products in international trade. The results showed that only the chemical industry might afford significant loss in international trade under strict environmental regulation. Other industries would not suffer, and some would otherwise benefit from environmental regulation. Moreover, environmental regulations proved beneficial for upgrading the structure of Chinese exports. Under strict environmental regulation, net exports of primary products which are often resource-intensive, heavy polluters decreased, while green and high value-added manufactured products were promoted.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 23
ISSN:0959-6526
1879-1786
DOI:10.1016/j.jclepro.2015.07.148