environmental regulation and u s economic growth in this article we quantify the costs of pollution controls by reporting the results of simulations of the growth of the u s economy with and without regulation for this purpose we have constructed a detailed model of the economy that includes the determinants of long term growth we have also analyzed the interaction between industries in order to capture the full repercussions of environmental regulations however we have not attempted to assess the benefits resulting from a cleaner environment we find that pollution abatement has emerged as a major claimant on the resources of the u s economy the cost of emission controls is more than 10 of the total cost of government purchases of goods and services

environmental regulation industrial innovation and green development of chinese manufacturing based on an extended cdm model abstract as for the academics and policymakers more attention has been given to the issue on how to drive green development of the manufacturing through regulations and innovations we construct the extended crepon duguet mairesse cdm model and employ the panel data of chinese manufacturing industries during 2003 2014 to examine the effects of environmental regulation on industrial innovation and green development the findings reveal that 1 in the long term environmental regulation has crowded out r d investment 2 environmental regulation has inhibited patent outputs so that the weak version of porter hypothesis is not underpinned 3 in the short term environmental regulation has promoted the improvements of labor productivity energy efficiency and environmental efficiency in the manufacturing industry excluding green total factor productivity gtfp whereas in the long term environmental regulation only has increased energy efficiency while it has obstructed labor productivity which provides no support for the strong version of porter hypothesis 4 different innovation outputs have distinct influences on labor productivity energy efficiency environmental efficiency and gtfp finally this paper provides pertinent policy implications

do renewable energy technology innovations promote china s green productivity growth fresh evidence from partially linear functional coefficient models abstract renewable energy technology innovation can benefit the environment by promoting green productivity as proposed by existing theoretical studies however recent uneven developments of both environmental performance and renewable energy technology among regions in china remind us to revisit the above theoretical link in this paper we relax the hypothesized homogeneity and linearity in traditional empirical models to investigate the effects of renewable energy technology innovation on china s green productivity the results of the partially linear functional coefficient models show that the effect of renewable energy technological innovation on green productivity is significant only when the relative income level of a province passes a critical turning point beyond the turning point such an effect increases with the growth of relative income levels finally we provide provincial specific policy implications based on the estimated nonparametric relationship between renewable energy technology innovation and green productivity

energy efficiency and productivity change of china s iron and steel industry accounting for undesirable outputs abstract this paper used data from 50 enterprises in china s iron and steel industry to evaluate their energy efficiency and productivity change the study first used a conventional data envelopment analysis model and the malmquist productivity index mpi to measure the energy efficiency and productivity change over the period 2001 2008 the results indicated inefficiency in many of the plants the average energy efficiency was only 61 1 the annual growth rate of productivity was 7 96 over this period and technical change was the main contributor to this growth the research then took undesirable outputs into consideration by using the malmquist luenberger productivity index mlpi to explore the productivity change from 2006 to 2008 omitting undesirable outputs would result in biased efficiency change and technical change this paper also claimed that environmental regulation has a potentially positive impact on technical change

nonlinear dynamics in deviations from the law of one price a broad based empirical study abstract in this paper we test empirically the validity of the law of one price using data for five major bilateral us dollar exchange rates and nine goods sectors during the recent floating exchange rate regime since the early 1970s using threshold autoregressive models we find strong evidence of nonlinear mean reversion in deviations from the law of one price with plausible convergence speeds consistent with theoretical arguments on international goods markets arbitrage under transactions costs and with an emerging strand of empirical literature these results contribute towards forming a consensus view in favor of discrete regime switching in deviations from the law of one price and the presence of differing nonzero transactions costs across a broad range of goods and countries

plant vintage technology and environmental regulation abstract we use data on productivity and pollution abatement costs at individual pulp and paper mills to test whether the impact of environmental regulation on productivity differs by plant vintage and technology plants with higher pollution abatement costs have significantly lower productivity levels this relationship differs greatly based on a plant s technology with productivity at integrated mills being greatly affected by abatement costs while the impact at non integrated mills is negligible plant vintage does not seem to matter with older and newer plants showing similar impacts reported abatement costs appear to substantially understate the true costs of abatement accounting for the impact of technology differences makes some difference in the estimated overall impact of environmental regulation

effects of local and civil environmental regulation on green total factor productivity in china a spatial durbin econometric analysis this paper employs metafrontier malmquist luenberger index and a spatial durbin model to investigate the influence of both local and civil environmental regulation and its spatial spillover effect on green total factor productivity in 273 cities of china in 2003 2013 according to city political attribute and regional differences this article divides the sample city into six categories the results show that effect of local environmental regulation on green total factor productivity is significantly positive in high political attribute cities a1 and a2 zone but negative effects in lower political attribute cities b2 and b3 zone moreover the race to the top results in significantly positive spatial spillover effects from local environmental regulation on green total factor productivity in high political attribute cities a1 and a2 zone while the race to the bottom causes significantly negative spatial spillover effects in lower political attribute cities b2 and b3 zone as for civil environmental regulation it has positive direct and indirect effects in promoting green total factor productivity we further find that environmental regulation inhibits the original technological innovation of enterprises which suggests that government should reduce market intervention improve enterprise flexibility of market change and promote enterprises to carry out the original technological innovation thus the government and citizen should make targeted pollution reduction policies for the green total factor productivity increase

optimal control for transboundary pollution under ecological compensation a stochastic differential game approach abstract to account for previously ignored yet widely observed uncertainty in nature s capability to replenish the natural environment in ways that should inform ideal design of ecological compensation ec regimes this study constructs a stochastic differential game sdg model to analyze transboundary pollution control options between a compensating and compensated region equilibrium strategies in the stochastic two player game inform optimal control theory and reveal a welfare distribution mechanism to form the basis of an improved cooperative game contract a case based numerical example serves to verify the theoretical results and supports three key insights first accounting for various random disturbance factors the probabilistic pollutant stock in stackelberg non cooperative game exceeds that of a cooperative game situation second the ec mechanism provides long term effective incentives only when the marginal losses of environmental damage in the compensating region are more than twice that of the compensated region achieving a pareto optimal equilibrium relies upon the attainment of a dynamic allocation ratio derived from the analysis of a robust welfare allocation mechanism third cross region cooperation reliably outperforms stackelberg non cooperation due to either overwhelming incumbent economic interests or high abatement costs this study illuminates the importance of balancing both parties interests within an ec agreement while reducing uncertainty around unobserved environmental factors during ex ante negotiations

testing for market power in multi product industries across multiple export markets a large body of theoretical literature has developed in the past 15 years incorporating various models of imperfect competition into international trade theory empirical work testing for imperfect competition in export markets however has been much more limited in particular the empirical evidence in support of widespread imperfect competition in u s export and import sectors is somewhat scant and mixed 2 one technique for assessing the existence of market power in export markets has been developed by knetter 33 who estimated a reduced form single equation in which the export price to a specific market for a good was a function of the exchange rate a country specific dummy variable and a time dummy knetter rejected the null hypothesis of perfectly competitive markets in nearly all of the u s and german export markets studied 3 his methodology has been adopted by other researchers who have rejected the perfect competition hypothesis in other u s export markets 4

environmental regulation and competitiveness empirical evidence on the porter hypothesis from european manufacturing sectors abstract this paper investigates the weak and strong versions of porter hypothesis ph focusing on the manufacturing sectors of 17 european countries between 1997 and 2009 the hypothesis that well crafted and well enforced regulation would benefit both the environment and the firm was originally proposed by porter 1991 and porter and van der linde 1995 to date the literature has analyzed the impact of environmental regulation on innovation and on productivity mostly in separate analyses and focusing on the usa the few existing contributions on europe study the effect of environmental regulation either on green innovation or on performance indicators such as exports we instead look at overall innovation and productivity impacts first focusing on overall innovative activity allows us to account for potential opportunity costs of induced innovations second productivity impacts are arguably the most relevant indicators for the strong ph as a proxy of environmental policy stringency we use pollution abatement and control expenditures pace one of the few sectoral level indicators available we remedy upon its main drawback namely potential endogeneity by adopting an instrumental variable estimation approach we find evidence of a positive impact of environmental regulation on the output of innovation activity as proxied by patents thus providing support in favor of the weak ph this result is in line with most of the literature on the other front we find no evidence in favor of the strong ph as productivity appears to be unaffected by the degree of pollution control and abatement efforts

how well do linear approximation methods work abstract in this paper we investigate the accuracy of approximating policy functions for three different approximation methods in the context of a neoclassical model with a production tax we find that a variant of the king plosser and rebelo procedure yields the best approximations overall but that in certain instances researchers may be better off using a discrete state space solution to the euler equations of the model

on some computational aspects of equilibrium business cycle theory abstract this paper evaluates the accuracy of quadratic approximate methods in the context of a simple real business cycle model the level of accuracy is found to be very high on the face of the results reported here we are confident that the different computation methods proposed to date in this literature can be employed interchangeably

a toolbox for the numerical study of linear dynamic rational expectations models espanolse presenta una guia para resolver y estudiar modelos de expectativas racionales dinamicas lineales ldre luego de codificar el modelo se aplica una function simple para log linealizarlo simular los efectos de series exogenas de shocks calcular condiciones de momentos muestrales y poblacionales y obtener funciones de impulso respuesta se resuelven y estudian detalladamente tres modelos clasicos en la literatura de real business cycles brock and mirman ldre toolbox of matlab functionsoptimal growth and uncertainty the discounted case journal of economic theory 4 3 479 513 1972 king plosser and rebelo production growth and business cycles i the basic neoclassical model journal of monetary economics 21 195 232 1988 y mendoza real business cycles in a small open economy american economic review 81 4 797 818 1991 englishby simplifying the computational tasks and by providing step by step explanations of the procedures required to study a linear dynamic rational expectations ldre model this paper and the accompanying ldre toolbox of matlab functions guide a researcher with almost no experience in computational work to resolve and study his own model after coding the model following specific guidelines a single function call is all that is needed to log linearize the model simulate it under exogenous sequences of shocks compute sample and population moment conditional models in the real business cycles literature are solved and studied throughout to give detailed examples of the steps involved in solving and studying ldre models using the ldre toolbox namely the economies in brock and mirman optimal growth and uncertainty the discounted case journal of economic theory 4 3 479 513 1972 king plosser and rebelo production growth and business cycles i the basic neoclassical model journal of monetary economics 21 195 232 1988 and mendoza real business cycles in a small open economy american economic review 81 4 797 818 1991

tariffs quotas and terms of trade the case of new zealand abstract this paper reports quantitative information on the effects of tariffs and quotas on prices of individual goods the analyses uses the natural experiment provided by a comprehensive unilateral trade policy reform in new zealand to examine the response of foreign exporters to an incident of liberalisation that is unique in the developed world the price effects of tariffs and quotas are estimated using a multidestination 7 digit longitudinal product level dataset on export values and quantities the effects are found to be by no means equivalent whereas tariffs display no significant effect the impact that quantitative restrictions have on the terms of trade of the country that imposes them are unequivocally detrimental and quantitatively important

environmental regulations and productivity growth the case of fossil fueled electric power generation this paper measures and analyzes the effect of sulfur dioxide emission restrictions on the rate of productivity growth in the electric power industry over the 1973 79 business cycle a firm specific measure of regulatory intensity is developed which depends on the severity of the emission standard the extent of enforcement and the unconstrained emission rate relevant to each utility the results indicate that emission regulations result in significantly higher generating costs primarily from the increased use of low sulfur fuels the average rate of productivity growth was reduced by 0 59 percentage points per year for constrained utilities

structural innovation and efficiency effects of environmental regulation evidence from china s carbon emissions trading pilot conventional wisdom argues that environmental regulation can trigger both structural adjustments and enhanced innovation we test this conjecture by using a difference in differences approach to analyze the impacts of china s carbon emission trading cet pilot policy on energy consumption we find that compliance with the cet regulation has triggered statistically significant adjustments in energy structure industrial structure and technological innovation adjustments in industrial structure also contribute to enhanced total factor energy efficiency whereas increased technological innovation has mixed effects on energy efficiency we show that in the short run government led innovation does not immediately contribute to improvement in energy efficiency whereas enterprise led innovation has a negative impact it indicates that cet regulation can affect energy efficiency through industrial structure and technological innovation overall our results provide new evidence for the strong version of the porter hypothesis our results also provide strong scientific support for china s recent transition towards market based carbon mitigation strategies

environmental innovation and environmental performance abstract by estimating a simultaneous panel data model of environmental innovation and toxic air pollution this paper identifies bi directional causal links between the two we study a panel of 127 manufacturing industries over the period 1989 2004 pollutant emissions are an implicit measure of policy stringency and environmental patent counts are used to measure environmental innovation after accounting for the joint endogeneity we find that environmental innovation is an important driver of reductions in us toxic emissions conversely we find that tightened pollution targets induce environmental innovation however our estimates indicate that the environmental policy multiplier the proportionate contribution of induced innovation to long run emission reduction is small

price discrimination by u s and german exporters the insensitivity of the u s trade balance to the sharp depreciation of the dollar in the past three years has revived interest in the relationship between exchange rates and the trade balance a central issue in most analyses of the relation between the current account and the exchange rate concerns the price adjustment process the simple integrated competitive market model predicts that local currency prices should change in proportion to the nominal exchange rate for a country too small to influence world prices the relationship between local currency import prices and exchange rates has been referred to as the pass through relationship in the empirical literature in international economics if the proportional relationship between import prices and exchange rates holds pass through is said to be complete accounts of recent u s experience cite the failure of dollar prices of imported goods to rise in proportion to exchange rates i e incomplete pass through as an important factor in explaining the persistence of the trade deficit unfortunately observations on pass through alone provide limited insight into the behavior of markets since incomplete pass through is consistent with at least two fundamentally different paradigms one is the standard competitive model of trade in which the law of one price holds but exchange rate fluctuations are associated with large changes in import demand due to other factors for example if dollar appreciation is correlated with increases in world demand and industry marginal cost is increasing then pass through will be less than complete the other is an imperfectly competitive model in which exporters are capable of price discriminating across destination markets a phenomenon paul krugman 1987 has labeled pricing to market in this model incomplete pass through is typically associated with fluctuations in the markup of price over marginal cost on exports 2 these fluctuations in markups are believed to be countryspecific they do not reflect the behavior of prices to other export destinations both models are plausible explanations of recent u s experience unfortunately it is impossible to distinguish between these competing models using only information on import prices and exchange rates for a single country in order to distinguish between the competing models an empirical analysis of goods prices and exchange rates must be capable of measuring either marginal cost or the markup over marginal cost either of these tasks poses formidable empirical problems much of the empirical literature in industrial organization has been concerned with precisely these issues since markups are an important measure of the competitiveness of industries

sustainable total factor productivity growth the case of china abstract a scientific and rational evaluation of the sustainable development process is of vital and practical significance for not only china but also the entire world this study incorporates the ecological footprint index and the human development index into the translog production function to define and construct a sustainable total factor productivity growth index the sustainable total factor productivity growth of 30 provinces in china from 2006 to 2016 was calculated by employing the stochastic frontier analysis method based on the translog production function the results are as follows firstly from 2006 to 2016 the overall sustainable total factor productivity growth of china was slow indicating sluggish sustainable development secondly factors such as labor productivity and environmental regulations were found to improve sustainable technological efficiency positively while capital deepening economic openness and industrial structure played a negative role in promoting sustainable technological efficiency thirdly sustainable total factor productivity growth for china s regions presented different upward trends in the order of the western central and eastern regions from high to low four the divergence of sustainable total factor productivity growth among the provinces revealed a high incidence of economic imbalance accompanied by the matthew effect thus revealing the problems of unresolved imbalances in china s sustainable development progress hence to improve china s sustainable total factor productivity growth it is imperative to focus on measures such as ensuring environmental governance upgrading the industrial structure and narrowing the gap in regional development

solution and estimation of re macromodels with optimal policy macro models of monetary policy typically involve forward looking behavior except in rare circumstances we have to apply some numerical method to find the optimal policy and the rational expectations equilibrium this paper summarizes a few useful methods and shows how they can be combined with a kalman filter to estimate the deep model parameters with maximum likelihood simulations of a macro model with staggered price setting interest rate elastic output and optimal monetary policy illustrate the properties of this estimation approach

toward a new conception of the environment competitiveness relationship accepting a fixed trade off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress studies finding high environmental compliance costs have traditionally focused on static cost impacts ignoring any offsetting productivity benefits from innovation they typically overestimated compliance costs neglected innovation offsets and disregarded the affected industry s initial competitiveness rather than simply adding to cost properly crafted environmental standards can trigger innovation offsets allowing companies to improve their resource productivity shifting the debate from pollution control to pollution prevention was a step forward it is now necessary to make the next step and focus on resource productivity

environmentally sensitive productivity growth a global analysis using malmquist luenberger index abstract we examine conventional and environmentally sensitive total factor productivity tfp in 41 developed and developing countries over the period of 1971 to 1992 due to the non availability of reliable input and co 2 emissions price data the study uses directional distance function to derive malmquist luenberger ml productivity index the index allows us to decompose the tfp into measures of technical and efficiency changes dea is used to compute the directional distance functions we find that tfp index value is not different when we account for the co 2 emissions relative to the situation when they are freely disposable but for the components of tfp change technical and efficiency changes the null hypothesis of whether the indexes are the same under two different scenarios cannot be accepted issues of catch up and convergence or in some cases possible divergence in productivity are examined within a global framework the paper also studies the impact of openness on conventional and environmentally sensitive measures of productivity

is the implementation of energy saving and emission reduction policy really effective in chinese cities a policy evaluation perspective abstract reducing pollutant emissions while ensuring a stable economic growth is an important embodiment of sustainable development based on the national comprehensive demonstration of energy saving and emission reduction fiscal policy eser policy proposed by the chinese government in 2011 this paper analyzes the impact of such policy on emissions reduction and economic growth under the framework of differences in differences did method this paper first identifies the implementation conditions of eser policy then we adopt three specifications to control the endogenous problem for the selection of demonstration cities the robustness test verifies the reliability of our findings and the spillover effect analysis reveals the deficiency of this policy we reach the following conclusions 1 different from the previous studies we find that the eser policy can effectively reduce the pollutant emissions while ensuring a stable economic growth 2 however the event study reveals that the reduction effect is only existing in the demonstration period which means that this policy is not sustainable 3 furthermore we find no spillover effect of eser policy on the non policy targeted pollutant suggesting that the local government only cares about the reduction of policy targeted pollutants based on these findings we propose that the future energy saving and emissions reduction policy formulation should focus on the policy sustainability and overall environmental performance

green efficiency and environmental subsidy evidence from thermal power firms in china abstract to achieve green development ample environmental subsidies have been invested into many energy intensive firms such as thermal power firms in china investigations of the effects of this kind of subsidy can help to provide specific and important implications for ongoing regulations unlike previous studies on the national regional or sectoral level this paper measures green efficiency and its compositions of thermal power firms and studies the impact of environmental subsidies on green efficiency by using the classical slacks based measure and tobit model the results show that the average green efficiency ranges from 0 509 to 0 663 during 2010 2015 which is much lower than the general efficiency the green scale efficiency is the main reason for the low green efficiency thus indicating large room for improvement environmental subsidies negatively affect green efficiency and its decompositions from 2010 to 2013 the negative effect becomes weak and insignificant in 2014 and the environmental subsidies start to significantly promote green efficiency and its decompositions in 2015 according to our findings some implications relating to improving green scale efficiency increasing the intensity of environmental subsidies to firms and strengthening their supervision are proposed

power industry restructuring and eco efficiency changes a new slacks based model in malmquist luenberger index measurement measuring variations in efficiency and its extension eco efficiency during a restructuring period in different industries has always been a point of interest for regulators and policy makers this paper assesses the impacts of restructuring of procurement in the iranian power industry on the performance of power plants we introduce a new slacks based model for malmquist luenberger ml index measurement and apply it to the power plants to calculate the efficiency eco efficiency and technological changes over the 8 year period 2003 2010 of restructuring in the power industry the results reveal that although the restructuring had different effects on the individual power plants the overall growth in the eco efficiency of the sector was mainly due to advances in pure technology we also assess the correlation between efficiency and eco efficiency of the power plants which indicates a close relationship between these two steps thus lending support to the incorporation of environmental factors in efficiency analysis

environmental regulation and green productivity growth empirical evidence on the porter hypothesis from oecd industrial sectors abstract green growth has become an important development strategy for oecd countries and governments have correspondingly implemented various environmental regulation policies whereas few studies have discussed the impacts of environmental regulation on green productivity growth in oecd countries based on a panel data of oecd countries industrial sectors this study analyzes the stringency of environmental regulation policies and measures green productivity growth using an extended sbm ddf approach the dynamic panel regression investigates the impacts and mechanism of environmental policy stringency on green productivity growth in oecd countries industrial sectors the main results are i porter hypothesis is validated that the environmental policy has a positive impact on green productivity growth within a certain level of stringency lower than 3 08 ii the impact turns to be adverse when the environmental regulation policy is stringent over a certain level as the compliance cost effect is higher than innovation offset effect the findings provide new empirical evidence for the strong version of the porter hypothesis and some implications for oecd countries to further promote green growth

productivity growth and environmental regulation in mexican and u s food manufacturing many argued during the nafta debate that trade liberalization would favor mexican over u s food processors especially because of lax environmental laws south of the border we find through an examination of profit functions that productivity growth in mexico has outstripped that in the united states suggesting free trade indeed will benefit mexican suppliers u s pollution regulations have had no impact on the profitability or productivity of u s food manufacturing in contrast mexico s swiftly rising environmental standards have enhanced food processors productivity growth corroborating the porter hypothesis pollution law therefore has favored mexican over u s food processing but for reasons few had anticipated

did the strong dollar increase competition in u s product markets sunk cost models of new trade theory have demonstrated that large unanticipated swings in currency values can have permanent effects on trade flows by altering market structure in imperfectly competitive markets the author tests an implication of these models using panel data on export unit values from germany and japan to a number of foreign markets including the united states he finds weak evidence in support of the thesis that u s product markets became more competitive as a result of the large dollar appreciation of the 1980s although the results vary by industry and comparison country copyright 1994 by mit press

non parametric efficiency progress and regress measures for panel data methodological aspects this purely methodological paper deals with the role of time in non parametric efficiency analysis using both fdh and dea technologies it first shows how each observation in a panel can be characterized in efficiency terms vis a vis three different kinds of frontiers i contemporaneous ii sequential and iii intertemporal these are then compared with window analysis next frontier shifts outward and inward interpreted as progress or regress are considered for the two kinds of technologies and computational methods are described in detail for evaluating such shifts in either case these are also contrasted with what is measured by the malmquist productivity index finally an alternative way of identifying progress and regress independent of the frontier notion and referring instead to some benchmark notion is extended here to panel data

evaluating the efficiency of industrial environmental regulation in china a three stage data envelopment analysis approach abstract environmental regulation is of great concern to international academics and policy makers previous studies often regarded environmental regulation as an influencing factor when calculating eco efficiency or energy efficiency more attention should be given to the efficiency of environmental regulation especially in industrial field according to exiting studies industrial environmental regulation efficiency iere may be influenced by external environmental factors to explore the influence and obtain an actual efficiency this paper calculated iere in china by using the panel data of 30 regions from 2011 to 2015 the 12th five year plan period through the three stage data envelopment analysis approach firstly the undesirable slacks based model method was used to calculate the original iere secondly the economic base industrial structure urbanization level and education level were taken as external environmental variables and the effect of external environmental factors and stochastic disturbance were excluded thirdly the actual iere can be calculated after adjusting input values the results showed that china s iere was underestimated due to the impact from external environmental factors moreover the iere was more influenced by pure technical efficiency than scale efficiency the iere of each region varied thus targeted policies should be formulated according to local conditions this research provided a new analytical method for calculating environmental regulation efficiency the method can be applied either in other countries or in other sectors

a general index of technical change this paper outlines a procedure for estimating a general index of technical change within the context of a quite general production technology specifically when panel data are available for firms in an industry time specific dummies can be combined in a nonlinear estimation procedure to yield a general index of technical change that may be both nonneutral and scale augmenting this approach offers numerous advantages over the traditional time trend representation of technical change for example the general index can serve as the basis for analysis of the determinants of technical change results for a sample of 30 electric utilities over the period 1951 78 show that the productivity decline of the 1970s can be attributed primarily to sulphur oxide restrictions and secularly declining capacity utilization due to rapidly increasing peak load demands

linking induced technological change and environmental regulation evidence from patenting in the u s auto industry a b s t r a c t this article uses a carefully screened patent database in automobile emission control technologies and a detailed regulatory action analysis to examine firms innovation in response to u s technology forcing auto emissions standards enacted between 1970 and 1998 the study finds that under the performance based technology forcing pbtf auto emissions regulations both automakers and compo nent suppliers innovated and introduced more advanced emission control technologies for automobile applications the study also shows that stringent pbtf regulation temporarily induced domestic u s firms to become more innovative than foreign firms that operated in the local u s market during the early phase of the regulatory regime findings of this research strongly imply that government intervention in the form of technology forcing regulation can drive firms to invest in technological innovation

productivity growth and environmental regulations accounting for undesirable outputs analysis of china s thirty provincial regions using the malmquist luenberger index this paper employs the malmquist luenberger ml productivity index to evaluate china s growth in total factor productivity tfp incorporating undesirable outputs during the period from 1989 to 2008 the ml productivity index and its components technical and efficiency changes are derived from the directional distance function which gives credit for an increase in good outputs and for reductions in undesirable outputs the average annual ml productivity growth accounting for undesirable outputs is 2 46 whereas the value of the traditional malmquist productivity index is 4 84 showing that the true tfp growth in china is overestimated if undesirable outputs are ignored we explore the strictness in enforcing environmental regulations and its impact on improvements in ml productivity the results show that the enforcement of environmental regulations in china is in general far below the levels achieved in the best performing regions and that the more stringent enforcement of environmental regulations would help to improve ml productivity growth in china

green productivity growth in china s industrial economy abstract this paper uses a directional distance function ddf and the malmquist luenberger productivity index to estimate the changing patterns of green total factor productivity gtfp growth of 38 chinese industrial sectors during the period 1980 2010 unlike the measures of traditional total factor productivity tfp growth the ddf incorporates carbon dioxide emissions as an undesirable output directly into the production technology which credit sectors for simultaneously reducing their emissions and increasing their output our estimates of aggregate and sector level gtfp growth reveal that chinese industry is not yet on the path towards sustainable low carbon growth a dynamic panel data analysis of the determinants of gtfp across sectors is used to identify factors that might rectify this situation including state owned enterprise soe reform the growth of small private enterprises continued openness to foreign investment and higher spending on r d particularly in emission intensive sectors

determinants of environmental innovation in us manufacturing industries abstract this paper provides new evidence on the determinants of environmental innovation we employ panel data models to study how environmental innovation by us manufacturing industries responded to changes in pollution abatement expenditures and regulatory enforcement during the period 1983 through 1992 we find that 1 environmental innovation as measured by the number of successful environmental patent applications granted to the industry responded to increases in pollution abatement expenditures however 2 increased monitoring and enforcement activities related to existing regulations did not provide any additional incentive to innovate we also find some empirical evidence that environmental innovation is more likely to occur in industries that are internationally competitive

innovation and the international diffusion of environmentally responsive technology abstract new evidence is presented on environmental innovation and diffusion over the 1970s and 1980s at a global level a substantial amount of innovations occurred in the united states japan and germany the share of environmental patents in all patents varied between 0 6 and 3 and as such was higher than the corresponding share of pollution abatement expenditure in gdp japanese environmental innovation rates were consistently high certain plausible connections between environmental regulation and innovation also emerge across these three countries and over time innovation responded to pollution abatement expenditure an indicator of the severity of environmental regulations environmental patenting rates in developing countries were also high reaching 2 in many years in brazil developing country innovators obtained a non trivial number of patents most of which appear geared towards adapting imported technologies to local conditions however domestic innovation was only one path to new technologies imports of disembodied environmental technologies foreign patents registered in developing countries were substantial foreign patents were typically important or generic patents evidence also suggests that such patents protected intellectual property in equipment exported developing countries especially in east asia often chose to obtain technologies embodied in pollution abatement equipment

real business cycles in this paper we demonstrate how certain very ordinary economic principles lead maximizing individuals to choose consumption production plans that display many of the characteristics commonly associated with business cycles our explanation is entirely consistent with i rational expectations ii complete current information iii stable preferences iv no technological change v no long lived commodities vi no frictions or adjustment costs vii no government viii no money and ix no serial dependence in the stochastic elements of the environment we also provide a completely worked out example of the type of artificial economy we have in mind the time series properties of the example exhibit some major features of observed business cycles although this type of model may not be capable of explaining all of the regularities in actual business cycles we believe that it provides a useful well defined benchmark for assessing the relative importance of factors e g monetary disturbances

environmental innovations and firm profitability unmasking the porter hypothesis we examine impacts of different types of environmental innovations on firm profits following porter s sci am 264 4 168 1991 hypothesis that environmental regulation can improve firms competitiveness we distinguish between regulation induced and voluntary environmental innovations we find that innovations which do not improve firms resource efficiency do not provide positive returns to profitability however innovations that increase a firm s resource efficiency in terms of material or energy consumption per unit of output have a positive impact on profitability this positive result holds for both regulation induced and voluntary innovations although the effect is greater for regulation driven innovation we conclude that the porter hypothesis does not hold in general for its strong version but depends on the type of environmental innovation our findings rest on firm level data from the german part of the community innovation survey 2008 cis 2008

exchange rates and prices the adjustment of relative prices to exchange rate movements is explained in an industrial organization approach given labor costs in the respective currencies exchange rate movements change costs for firms selling in the home market and thus disturb the industry equilibrium the extent of absolute and relative price adjustment is shown to depend on market integration product substitutability the relative number of domestic and foreign firms and the market structure the impact of exchange rates on prices is illustrated in a variety of approaches including the cournot a dixit and j stiglitz 1977 and s salop 1979 models some empirical evidence is offered in support of the theory copyright 1987 by american economic association

environmental regulation and environmental productivity the case of china abstract constrained by the dual mission of supporting industrial growth and reducing emissions china s traditional emission reduction oriented environmental policies unavoidably face a dilemma this study adopts the gml index to calculate china s industrial productivity by considering environmental factors in addition based on the assumption of industry heterogeneity the author examines the non linear relationship between china s environmental regulation and environmental productivity and calculated the optimal regulation environment for industries according to this study when impact of undesirable outputs pollutant emissions is considered environmental regulation and environmental productivity are positively correlated which to some degree validates the porter hypothesis at present environmental regulation has significant positive effects on clean production industries but shows a lag effect on pollution intensive industries the degree of environmental regulation and environmental productivity show an inverted u shaped relation and display three thresholds it should be noted however that the relationship between regulation and productivity may vary across industries these findings have clear policy implications rather than continually increasing the level of environmental regulation the government should establish standards for individual industries that emphasize flexibility

environmental regulations environmental governance efficiency and the green transformation of china s iron and steel enterprises abstract based on micro level enterprise panel data from 2005 to 2014 a slack based global data envelopment analysis dea model and a global malmquist luenberger index model are used to calculate the environmental governance efficiency ege of china s iron and steel enterprises ises then the different effects of two types of environmental regulation on ege of china s ises are analysed the results show that the overall level of ege for china s ises has remained low over the past 10 years the total factor environmental governance efficiency tfege presents a decreasing trend from 2005 to 2014 and the decline in tfege is mainly attributed to the technical progress change index gtpch moreover the bootstrap dea method is used for bias correction and the correction efficiency values are all within the confidence interval improving the accuracy of ege evaluation the regression analysis results show that different types of environmental regulations exert heterogeneous effects on tfege the relationship between market incentive environmental regulation and tfege has an inverted u shaped implying that although market incentive environmental regulation may improve the tfege in the short term continuously increasing this intensity would inhibit it however command control environmental regulation and tfege have a positive but not significant relationship