The Relationship between Trade Liberalization and Environmental Pollution across Enterprises with Different Levels of Viability in China

ABSTRACT

This study investigates the varying effects of trade liberalization on environmental pollution from the perspective of enterprise viability. We find that trade liberalization significantly reduces pollution emissions, and the environmental effect on low viability and high viability enterprises varies. Our results also indicate that the emissions trading policy enhances the abating effect of trade liberalization on environmental pollution in both high viability and low viability enterprises, whereas the voluntary environmental policy reduces this effect. This study not only extends the applicability of new structural economics but also presents empirical evidence for further market opening and actions to improve the environment.

KEYWORDS:

• Trade liberalization
• environmental pollution
• enterprise viability
• new structural economics

JEL:

• F18
• Q56

Disclosure statement

The authors declare that there are no conflict of interest involved.

Additional information

Funding

Project supported by the Ministry of Education of Humanities and Social Sciences Project of China (Grant No. 19YJC790200, 19YJC790202), and the National Statistical Science Research Fund of China (Grant No. 2019LZ36)