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Heterogeneous Environmental Regulation and the Quality of China′s Economic Growth: Which is Better, Administrative Order or Market Instruments?

HE Xing-bang   

  1. (School of Economics and Management, Southwest Petroleum University, Chengdu 610500, China)
  • Received:2020-06-22 Online:2020-09-21

Abstract: Based on provincial panel data from 2000 to 2017, this study constructs an indicator evaluation system measuring the quality of regional economic growth from six dimensions: efficiency, structure, stability, environment, people′s livelihood, and distribution. Then it conducts empirical research on the heterogeneity of the impact exerted by different environmental regulation tools on the quality of economic growth. The results show that the advantages of command environmental regulation are reflected in three aspects of eco-efficiency effect, industrial structure upgrading effect and green development effect, while the shortcoming is that it will reduce development stability and fairness of income distribution;the advantage of market-based environmental regulation lies in the welfare effect without significantly reducing development stability and income distribution equity;under the influence of comprehensive effects, the quality of comprehensive economic growth of market-based environmental regulation is higher than that of command environmental regulation. Therefore, this study believes that different types of environmental regulation tools have their own advantages and disadvantages. Policymakers should make decisions based on local conditions, combine local core development goals, and scientifically select environmental regulation tools to promote high-quality economic growth.

Key words: environmental regulation, command-based, market-based, economic growth quality