Can environmental regulation improve the industrial ecology efficiency? Evidence from China's environmental protection tax reform

Lingqian Kong; Yuxiu Yao; Kai Xu

doi:10.1016/j.jenvman.2024.123792

Can environmental regulation improve the industrial ecology efficiency? Evidence from China's environmental protection tax reform

J Environ Manage. 2025 Jan 3:373:123792. doi: 10.1016/j.jenvman.2024.123792. Online ahead of print.

Authors

Lingqian Kong¹, Yuxiu Yao², Kai Xu³

Affiliations

¹ Zhejiang Province Key Think Tank Academy for Institute of Ecological Civilization, Zhejiang A&F University, Hangzhou, China; College of Economics and Management, Zhejiang A&F University, Hangzhou, 311300, China; School of Economics & Management, Beijing Forestry University, Beijing, 100083, China. Electronic address: arvin_lqkong@163.com.
² College of Economics and Management, Zhejiang A&F University, Hangzhou, 311300, China. Electronic address: yaoyuxiu2022@163.com.
³ College of Economics and Management, Zhejiang A&F University, Hangzhou, 311300, China. Electronic address: njuxk1988@163.com.

PMID: 39754804
DOI: 10.1016/j.jenvman.2024.123792

Abstract

Improving industrial ecology efficiency (IEE) is the key path to achieve green economic development. This paper calculates IEE of 273 Chinese cities a super slacks-based measurement (Super-SBM) model and examines the impact of environmental protection tax reform (EPTR) on IEE by the difference-in-difference (DID) model. The results show that the effect of EPTR on IEE is significantly positive. After a series of robustness tests, this conclusion still holds true. EPTR has a more obvious effect on IEE of coastal cities, Class 1 cities and non-resource-based cities. EPTR mainly enhances IEE through green technology innovation effect, industrial structure upgrading effect and public participation effect. This paper provides empirical evidence for improving China's environmental policies and promoting green transformation.

Keywords: Environmental protection tax reform; Environmental regulation; Green technology innovation; Green transformation and development; Industrial ecological efficiency.