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CAN ENVIRONMENTAL REGULATIONS STIMULATE THE INDUSTRIAL-LEVEL PORTER EFFECT? EVIDENCE FROM THE KCAPC POLICY IN CHINA.

dc.contributor.authorWang, Xiaorui
dc.contributor.chairTurvey, Calumen_US
dc.contributor.committeeMemberSchulze, Williamen_US
dc.contributor.committeeMemberWolfolds, Sarahen_US
dc.date.accessioned2024-01-31T21:12:53Z
dc.date.available2024-01-31T21:12:53Z
dc.date.issued2023-05
dc.description.abstractAccording to the Porter Hypothesis, well-designed environmental regulations may lead, counter to established wisdom, to increased innovation and productivity as firms reduce pollution and make optimal production decision changes. Finding the causal relationships between environmental regulation, firms’ innovation, and competitiveness is challenging. As a result, researchers continue to find inconsistent evidence concerning the Porter Hypothesis. In this thesis, we examine the influence of a national air pollution control policy on innovation and labor productivity at the industry-city level in China using a firm-level panel dataset from 1999 to 2009. We analyze this policy as a quasi-natural experiment using propensity score matching and difference-in-difference analysis. We find that environmental regulations stimulated industrial innovation in China, supporting the weak Porter Hypothesis. Regarding the validity of the strong Porter Hypothesis in this case, the translation of these new innovative practices into labor productivity increases hinges upon firm and industry characteristics. Both patent applications and labor productivity significantly increased in industries where more firms were entering. In industries where entry and exit were minimal, the increase in innovation was concentrated among private firms with small positive profits, and the rise in labor productivity was concentrated among private firms with low pollution levels.en_US
dc.identifier.doihttps://doi.org/10.7298/jw60-4t49
dc.identifier.otherWang_cornell_0058O_11743
dc.identifier.otherhttp://dissertations.umi.com/cornell:11743
dc.identifier.urihttps://hdl.handle.net/1813/113957
dc.language.isoen
dc.titleCAN ENVIRONMENTAL REGULATIONS STIMULATE THE INDUSTRIAL-LEVEL PORTER EFFECT? EVIDENCE FROM THE KCAPC POLICY IN CHINA.en_US
dc.typedissertation or thesisen_US
dcterms.licensehttps://hdl.handle.net/1813/59810.2
thesis.degree.disciplineApplied Economics and Management
thesis.degree.grantorCornell University
thesis.degree.levelMaster of Science
thesis.degree.nameM.S., Applied Economics and Management

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