Economics of wastewater management in China's industry

This article provides an economic investigation into the underlying causes of industrial wastewater emissions. We examine the direct and the structural break-induced effect of national environmental regulation on industrial wastewater emissions. The results show that strict environmental regulation...

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Bibliographic Details
Published in:Environment and development economics 2019-10, Vol.24 (5), p.457-478
Main Authors: An, Yao, Zhang, Lin, Adom, Philip Kofi
Format: Article
Language:English
Subjects:
Agricultural production
Chemical oxygen demand
Clean energy
Coal
Econometrics
Economic development
Economic growth
Economic models
Economic reform
Economics
Emissions
Energy consumption
Energy sources
Environmental policy
Environmental protection
Environmental regulations
Environmental services
Free trade
Green energy
Health risk assessment
Health risks
Industrial development
Industrial wastes
Industrial wastewater
Inflow
Pollutants
Regulation
RESEARCH ARTICLE
Sulfur
Trade liberalization
Wastewater
Wastewater management
Water pollution
Water quality
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Summary:This article provides an economic investigation into the underlying causes of industrial wastewater emissions. We examine the direct and the structural break-induced effect of national environmental regulation on industrial wastewater emissions. The results show that strict environmental regulation can partially offset the energy-induced effects imposed by the scale effects of foreign direct inflows and cause positive behavioral responses by either limiting coal usage or improving upon coal usage technology and shift towards clean energy sources. We find the absence of scale economies in the provision of environmental services in the industrial sector due to the poor nature of the technical processes of industries. We further highlight the importance of raising the investment in environmental treatment and embracing trade liberalization in the improvement of industrial wastewater management.
ISSN:1355-770X
1469-4395
DOI:10.1017/S1355770X19000202