Dynamic Activity Analysis Model Based Win-Win Development Forecasting Under the Environmental Regulation in China
SFB 649 Discussion Paper 2012-002
23 Pages Posted: 7 Jan 2017
Date Written: January 5, 2012
Abstract
Porter Hypothesis states that environmental regulation may lead to win-win opportunities, that is, improve the productivity and reduce the undesirable output simultaneously. Based on directional distance function, this paper proposes a novel dynamic activity analysis model to forecast the possibilities of win-win development in Chinese Industry between 2009 and 2049. The evidence reveals that the appropriate energy-saving and emission-abating regulation will result in both the improvement in net growth of potential output and the steadily increasing growth of total factor productivity. This favors Porter Hypothesis.
Keywords: Dynamic Activity Analysis Model, Energy-Saving and Emission-Abating, Environmental Regulation, Win-Win Development
JEL Classification: D24, O47, Q25, Q32
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