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| Do Environmental-friendly Manufacturing Zones Cause a Rise in Plants' Environmental Performance?Evidence from China’s Environmental-friendly Manufacturing Zone Program |
| WANG Bing, DAI Min, WU Wenjie
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| School of Economics, Jinan University |
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Abstract Based on the consolidated micro panel data, we used the policy of Environmental-friendly Manufacturing Zones in Dongguan as a quasi-natural experiment, and proposed a framework including difference-in-difference method and a series of robust tests, to assess the impacts of the EMZ policy on plants' environmental performance from the dimensions of space and time. The study found that, the EMZ policy did improve the environmental performance of plants inside the zones remarkably, especially in dealing with waste water, waste gas, COD and nitrogen oxygen pollution problems; through the radiation effect, the policy also contributed to the surrounding enterprises outside the zone environmental performance improvement, and the radiation decayed with distance; in the long term, the environmental performance corresponding to some pollutants has been improved; these empirical results remain robust across statistical tests of multi-perspectives. This means that the implementation of rigorous, reasonable environmental protection policy, to achieve green economic development model of high production growth and low pollution, is entirely possible. This study provides a micro level empirical evidence for the effects of regional environmental policy implementation and sheds lights on the effectiveness of place-based environment regulations.
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Received: 03 November 2016
Published: 18 January 2018
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