Improvement of Different Types of Environmental Regulations on Total Factor Productivity: A Threshold Effect Analysis

Abstract EN

Based on the distinction of different types of environmental regulations, this paper attempts to test the threshold effect of environmental regulation on the total factor productivity (TFP) by employing a panel threshold model and a province-level panel data set during 2006–2016.

Research results show that the influence of command-and-control and market incentive environmental regulation on the total factor productivity has a single threshold conversion characteristic of foreign direct investment (FDI) and financial scale, but the impact behavior and influence degree around the threshold are inconsistent.

The effect of voluntary conscious environmental regulation on the total factor productivity has a single threshold conversion feature of human capital, and moderately enhanced intensity of environmental regulation is conducive to promoting the total factor productivity after crossing the threshold.

Finally, in order to enhance the regional total factor productivity, relevant policy recommendations are proposed.