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How does environmental legislation guide urban green transition development? Evidence from China
Junting Zhou1, Xuewei Yu1, Xue Chen2
1School of Economics and Management, Southeast University, No.2 Dongnan University Road, Nanjing, 211189, PR China.
Local environmental legislation significantly boosts green total factor energy efficiency (GTFEE) in Chinese cities. Comprehensive protection laws are key, driving industrial upgrades and technological innovation for a greener transition.
Area of Science:
- Environmental Law
- Energy Economics
- Urban Studies
Background:
- Urban environmental legislation in Chinese prefecture-level cities (2000-2018) provides a unique dataset.
- Assessing the impact of local environmental laws on green total factor energy efficiency (GTFEE) is crucial for sustainable development.
Purpose of the Study:
- To examine the causal relationship between urban environmental legislation and GTFEE.
- To identify the mechanisms through which legislation influences energy efficiency.
- To explore regional and contextual variations in legislative impact.
Main Methods:
- Econometric analysis of prefecture-level city data from 2000 to 2018.
- Distinguishing between comprehensive protection and pollution prevention regulations.
- Robustness checks across multiple scenarios.
Main Results:
- Environmental legislation significantly enhances GTFEE.
- Comprehensive protection regulations show a positive impact, while pollution prevention regulations have an insignificant effect.
- Mechanisms include industrial upgrading (clean industry development, polluting industry exit) and technological innovation (new/old technology upgrading).
Conclusions:
- Urban environmental legislation is a potent tool for improving GTFEE and promoting urban green transition.
- Regulatory effectiveness and specific urban characteristics (non-old industrial bases, infrequent official turnover, central/western regions) amplify the positive impact.
- Strengthening the rule of law in environmental governance is vital for achieving energy savings and sustainability.
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