The threshold effect of environmental regulation on the green transition of the industrial economy in China

Figures & data

Table 1. The descriptive statistics of major variables in 2001–2011.

	Average	Median	Max	Min	STD
Gross value of industrial output (bil. RMB)	8,763	4,455	82,243	112	11,391
Industrial wastewater discharge (10,000 MT)	55,739	86,909	44,597	298	20,109
Industrial exhaust emissions (bil. m^3)	9,512	1,053	202,906	7	1,053
Industrial solid waste discharge (10,000 MT)	4,266	315	69,085	2	9,630
Industrial CO2 emissions (bil. MT)	14,700,000	10,439,287	33,100,000	298,419	4,380,000
Capital (bil. RMB)	1,524	765	20,140	61	2,421
Labour (10,000)	201	132	820	13	167
Energy (10,000 MT of standard coal)	4,725	1,350	58,897	88	8,843

Table 2. Empirical results of G.T.F.P. and green transition of China’s industrial economy in 2001–2011.

Industrial Sectors	GTFP	Efficiency Change	Technological Progress	Green Contribution	Regulation intensity
Green-Intensive group
Petroleum and natural gas extraction	1.12	0.98	1.07	49.11%	0.15
Food processing	1.03	1.01	1.02	16.13%	0.26
Food manufacturing	1.03	1.01	1.02	78.97%	0.23
Beverage manufacturing	1.07	1.03	1.03	7.76%	0.40
Tobacco processing	1.07	1.00	1.07	74.39%	0.06
Textile industry	1.04	1.06	1.04	80.13%	0.45
Stationery, educ, and sports goods	1.00	1.00	1.00	−13.27%	0.02
Medical and pharmaceutical products	1.02	1.00	1.02	13.94%	0.27
Chemical fibers	1.04	1.00	1.04	62.20%	0.65
Plastics products	1.02	0.97	1.09	34.28%	0.03
Metal products	1.03	1.00	1.03	96.72%	0.09
Electronic and telecom. equipment	1.05	1.00	1.05	92.77%	0.03
Electric power, steam, hot water	1.19	1.14	1.07	73.87%	1.45
Tap water production and supply	1.05	1.00	1.05	59.09%	1.24
Intermediate group
Nonmetal minerals mining/processing	1.01	1.10	0.96	45.36%	0.98
Garment and other fiber products	1.03	0.99	1.09	42.58%	0.07
Furniture manufacturing	1.009	1.00	1.01	−1.50%	0.03
Raw chemical materials and products	1.04	1.01	1.03	19.83%	0.72
Nonmetal mineral products	1.07	1.03	1.04	−13.27%	0.54
Smelting/pressing of ferrous metals	1.13	1.11	1.07	12.73%	0.68
Instruments, meters, etc.	1.04	1.00	1.04	45.53%	0.05
Extensive group
Coal mining and processing	1.15	1.01	1.04	44.26%	4.68
Ferrous metals mining and processing	0.94	0.95	1.04	35.04%	0.54
Nonferrous metals mining and processing	1.03	1.13	1.00	36.82%	2.85
Leather, furs, down; related products	1.07	1.06	1.04	−16.99%	0.11
Timber, bamboo, cane, and etc.	1.02	1.03	1.05	15.64%	0.06
Papermaking and paper products	1.17	1.09	1.03	11.40%	1.99
Printing and record pressing	1.07	1.02	1.03	19.02%	0.06
Petroleum proc. and coking products	1.12	1.09	1.06	28.13%	0.67
Rubber products	1.02	1.00	1.02	12.73%	0.16
Smelting/pressing of Nonferrous Metals	1.05	1.02	1.03	0.94%	0.50
Ordinary machinery manufacturing	1.08	1.06	1.03	16.25%	0.06
Special purpose equipment manufacturing	1.04	1.01	1.03	7.55%	0.07
Transportation equipment manufacturing	1.08	1.06	1.03	15.56%	0.04
Electric equipment and machinery	1.06	1.04	1.03	8.84%	0.02
Gas production and supply	1.06	1.00	1.06	17.71%	0.20
Sector Average	1.06	1.03	1.04	31.38%

Notes: a. Green transition rate is the contribution of G.T.F.P. to the rate of industrial economic growth.

b. Some sectors are shown to have negative green contribution rate, which can be due to a reduction in green contribution, or due to the decreased investment in capital, labour and energy compared with previous time period.

Figure 1. Trend of environmental regulation intensity by clusters of industrial sectors from 2001 to 2011.

Table 3. Parameter estimation results of grouping threshold panel data model.

	All Sectors	Green-Intensive Group	Intermediate Group	Extensive Group
No. Of Threshold	1	1	2	1
Threshold Value(s)	1.01	0.03	0.51, 0.92	1.04
${\alpha }_0$	3.91 (1.50)	2.68 (0.52)	7.97 (1.57)	−0.01 (−0.01)
${\alpha }_1$	1.15 (3.07)***	49.72 (2.10)	−4.83 (−4.79)	0.85 (6.69)***
${\alpha }_2$	0.11 (1.91)***	0.12 (0.57)*	2.72 (5.14)***	0.10 (9.81)***
${\alpha }_3$	N/A	N/A	−1.03 (1.84)*	N/A
${\beta }_1$	−0.81 (−2.20)**	−1.84 (−2.96)**	−0.34 (−0.53)	−0.19 (−1.11)
${\beta }_2$	−0.15 (−0.73)	0.33 (0.62)	−0.54 (−1.38)	0.02 (0.31)
${\beta }_3$	0.10 (1.04)	0.05 (0.21)	0.11 (0.37)	−0.07 (1.88)*

Notes: T values are in the brackets. ***, **, and * indicate at 1%, 5%, and 10% significance level. respectively.