The determinants of pollution levels : firm-level evidence from Chinese manufacturing

Liangliang JIANG, Chen LIN, Ping LIN

Research output: Journal PublicationsJournal Article (refereed)

46 Citations (Scopus)

Abstract

Using a large, unique, firm-level dataset from the Chinese manufacturing sector, we study important factors that are related to emission intensity for three pollutants in China – sulfur dioxide, wastewater, and soot. Our main findings are as follows: (1) compared to state-owned enterprises (SOEs), both foreign-owned firms and domestic public-listed firms exhibit less intensive pollutant emissions; (2) firms in regions with less local protection have lower pollution intensity; (3) better property rights protection is negatively correlated with pollutant discharge over and beyond the national standards; and (4) larger firms, firms in industries that export more, and firms with more educated employees pollute less. These results suggest that China should not target foreign firms more harshly in its effort to reduce industrial pollution. Better institutions in the form of more effective law enforcement and lower entry barriers across regional markets are also means of curbing China’s pressing environmental problems during its current stage of economic development.
Original languageEnglish
Pages (from-to)118-142
Number of pages25
JournalJournal of Comparative Economics
Volume42
Issue number1
Early online date14 Aug 2013
DOIs
Publication statusPublished - Feb 2014

Fingerprint

Pollution
Manufacturing
China
Large firms
Foreign firms
State-owned enterprises
Waste water
Manufacturing sector
Sulfur dioxide
Entry barriers
Industrial pollution
Industry
Property rights
Law enforcement
Employees
Economic development
Pressing
Factors

Bibliographical note

L. Jiang and P. Lin gratefully acknowledge Lingnan University for financial support of this project.

Keywords

  • FDI
  • Law enforcement
  • Local protection
  • Pollution

Cite this

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title = "The determinants of pollution levels : firm-level evidence from Chinese manufacturing",
abstract = "Using a large, unique, firm-level dataset from the Chinese manufacturing sector, we study important factors that are related to emission intensity for three pollutants in China – sulfur dioxide, wastewater, and soot. Our main findings are as follows: (1) compared to state-owned enterprises (SOEs), both foreign-owned firms and domestic public-listed firms exhibit less intensive pollutant emissions; (2) firms in regions with less local protection have lower pollution intensity; (3) better property rights protection is negatively correlated with pollutant discharge over and beyond the national standards; and (4) larger firms, firms in industries that export more, and firms with more educated employees pollute less. These results suggest that China should not target foreign firms more harshly in its effort to reduce industrial pollution. Better institutions in the form of more effective law enforcement and lower entry barriers across regional markets are also means of curbing China’s pressing environmental problems during its current stage of economic development.",
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The determinants of pollution levels : firm-level evidence from Chinese manufacturing. / JIANG, Liangliang; LIN, Chen; LIN, Ping.

In: Journal of Comparative Economics, Vol. 42, No. 1, 02.2014, p. 118-142.

Research output: Journal PublicationsJournal Article (refereed)

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T1 - The determinants of pollution levels : firm-level evidence from Chinese manufacturing

AU - JIANG, Liangliang

AU - LIN, Chen

AU - LIN, Ping

N1 - L. Jiang and P. Lin gratefully acknowledge Lingnan University for financial support of this project.

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N2 - Using a large, unique, firm-level dataset from the Chinese manufacturing sector, we study important factors that are related to emission intensity for three pollutants in China – sulfur dioxide, wastewater, and soot. Our main findings are as follows: (1) compared to state-owned enterprises (SOEs), both foreign-owned firms and domestic public-listed firms exhibit less intensive pollutant emissions; (2) firms in regions with less local protection have lower pollution intensity; (3) better property rights protection is negatively correlated with pollutant discharge over and beyond the national standards; and (4) larger firms, firms in industries that export more, and firms with more educated employees pollute less. These results suggest that China should not target foreign firms more harshly in its effort to reduce industrial pollution. Better institutions in the form of more effective law enforcement and lower entry barriers across regional markets are also means of curbing China’s pressing environmental problems during its current stage of economic development.

AB - Using a large, unique, firm-level dataset from the Chinese manufacturing sector, we study important factors that are related to emission intensity for three pollutants in China – sulfur dioxide, wastewater, and soot. Our main findings are as follows: (1) compared to state-owned enterprises (SOEs), both foreign-owned firms and domestic public-listed firms exhibit less intensive pollutant emissions; (2) firms in regions with less local protection have lower pollution intensity; (3) better property rights protection is negatively correlated with pollutant discharge over and beyond the national standards; and (4) larger firms, firms in industries that export more, and firms with more educated employees pollute less. These results suggest that China should not target foreign firms more harshly in its effort to reduce industrial pollution. Better institutions in the form of more effective law enforcement and lower entry barriers across regional markets are also means of curbing China’s pressing environmental problems during its current stage of economic development.

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