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Updated: Jul 2, 2025

Implementation of Portable Emissions Measurement Systems PEMS for the Real-driving Emissions RDE Regulation in Europe
Published on: December 4, 2016
Economic level, environmental regulation, and new energy industry development
Xiaohong Xiang1, Wenting Wang2,3
1Department of Economics and Management, Taiyuan Institute of Technology, Taiyuan, Shanxi, 030002, China. xiaohonghust@126.com.
Environmental policies significantly boost China's new energy (NE) industry, increasing output and growth potential. Higher regional economic levels amplify these positive effects, driving NE industry development.
Area of Science:
- Environmental economics
- Industrial development
- New energy sector
Background:
- China's environmental policies aim to foster sustainable development.
- The new energy industry is crucial for economic transition and emission reduction.
- Understanding the interplay between policy, economy, and industry growth is vital.
Purpose of the Study:
- To investigate the impact of environmental policies on China's new energy (NE) industry.
- To analyze the moderating role of regional economic level in the policy-industry relationship.
- To identify other key factors influencing NE industry development.
Main Methods:
- Panel data analysis from 30 provinces and NE-listed enterprises (2011-2020).
- Application of a basic model to assess policy impacts.
- Utilization of a threshold model to examine economic level as a moderator.
Main Results:
- Environmental policies significantly promote NE industry output value, profit, and growth potential.
- Regional economic level acts as a threshold, with higher levels amplifying policy benefits.
- Residents' education, financial support, and industry agglomeration positively impact NE development; population size does not.
Conclusions:
- Environmental regulations are effective drivers for the new energy sector in China.
- Economic development is a critical factor in maximizing the benefits of environmental policies for the NE industry.
- Targeted support, education, and strategic agglomeration are key for sustained NE industry growth.
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