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The impact of environmental regulation on the coordinated development of environment and economy in China

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Abstract

The contradiction between environmental protection and economic development has become an important issue in China. Environmental regulation, as a vital content of public regulation, is an effective approach to rectify market failure. Thus, studying the impact of environmental regulation on the coordinated development between environment and economy is beneficial to design the most suitable environmental management system for Chinese government. Based on the theory of regulation economics and industrial organization, this paper incorporates environmental regulation policy in the traditional SCP paradigm and analyzes the conduction mechanism of market structure and market behaviors on the coordinated development between environment and economy. With the empirical analysis, we find the existence of an EKC curve, which means that tightening the environmental regulation is an effective means of guaranteeing economic growth and optimizing environmental quality. Eventually, we point out the problems existing in China’s current environmental regulation system and design a new one which is more suitable for the current economic development stage of China.

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Acknowledgements

The authors gratefully acknowledge the financial support from the National Natural Science Foundation of China (Grant No. 71173141). We also thank the anonymous referees for their helpful suggestions on our paper.

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Authors and Affiliations

  1. School of Economics, Shanxi University of Finance and Economics, 696 Wucheng Road, Xiaodian District, Taiyuan, 030006, China

    Huaming Zhang, Zhishuang Zhu & Yingjun Fan

Authors
  1. Huaming Zhang
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  2. Zhishuang Zhu
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  3. Yingjun Fan
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Correspondence to Huaming Zhang.

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Zhang, H., Zhu, Z. & Fan, Y. The impact of environmental regulation on the coordinated development of environment and economy in China. Nat Hazards 91, 473–489 (2018). https://doi.org/10.1007/s11069-017-3137-3

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  • DOI: https://doi.org/10.1007/s11069-017-3137-3

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