Threshold Effects of Environmental Regulation on Total Factor Energy Efficiency in China

نویسندگان

  • Ling Yun Huang
  • Hui Qiang Xie
چکیده

This paper examines the threshold effects of environmental regulation on China’s total factor energy efficiency (TFEE), by selecting the technological innovation (as measured by patents) as threshold variable. Using the SBM (Slacksbased Measure)-undesirable model, we first estimate TFEE of China's 30 provinces from 2000 to 2011 under the constraints of energy conservation and emission reduction, and then analyze the impact of environmental regulation on TFEE based on the panel threshold regression model. The results show that on the one hand the average level of China's TFEE from 2000 to 2011 is 0.503, which indicates that TFEE of China has a large room to improve. On the other hand, environmental regulation has threshold effects on TFEE. Only technological innovation level is between the first and second threshold value, can stringent environmental regulation improve TFEE. When technological innovation is under the first or over the second threshold value, intensifying environmental regulation would lower TFEE. The results prove that environmental regulation does not always enhance TFEE, and that the positive effect of environmental regulation on TFEE must be in the range of certain threshold value. In addition, improving technological innovation level and adjusting industrial structure have positive effect on TFEE, while the irrational energy consumption structure have negative effect on it.

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تاریخ انتشار 2015