Can environmental regulation improve the industrial ecology efficiency? Evidence from China's environmental...

Improving industrial ecology efficiency (IEE) is the key path to achieve green economic development. This paper calculates IEE of 273 Chinese cities a super slacks-based measurement (Super-SBM) model and examines the impact of environmental protection tax reform (EPTR) on IEE by the difference-in-difference (DID) model. The results show that the effect of EPTR on IEE is significantly positive. After a series of robustness tests, this conclusion still holds true. EPTR has a more obvious effect on IEE of coastal cities, Class 1 cities and non-resource-based cities. EPTR mainly enhances IEE through green technology innovation effect, industrial structure upgrading effect and public participation effect. This paper provides empirical evidence for improving China's environmental policies and promoting green transformation.