Author(s)

R.R. YANG, R.Y. LONG, T. YUE & Y.Y. ZHUANG

Abstract

The impact of environmental regulations on industry performance is a current worldwide concern. There are several different viewpoints on the effects of environmental regulations. Whether environmental regulations could hamper industrial performance is worth to be assessed in China. We use panel data for six samples from manufacturing industry in China from 1996 to 2011 in an empirical analysis of the impact of environmental regulations on industry performance. The results show that environmental regulations have a significant positive relationship with productivity and have a certain role in promoting the performance of manufacturing industries. This leads to a different conclusion from the general point of view, and the Porter Hypothesis is verified to a certain degree.

Keywords

Environmental regulations, industry performance, manufacturing industry, panel data, Porter Hypothesis.