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

See all articles by Shiyi Chen

Shiyi Chen

Fudan University

Wolfgang Karl Härdle

Blockchain Research Center Humboldt-Universität zu Berlin; Charles University; National Yang Ming Chiao Tung University; Asian Competitiveness Institute

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

Suggested Citation

Chen, Shiyi and Härdle, Wolfgang Karl, Dynamic Activity Analysis Model Based Win-Win Development Forecasting Under the Environmental Regulation in China (January 5, 2012). SFB 649 Discussion Paper 2012-002, Available at SSRN: https://ssrn.com/abstract=2894222 or http://dx.doi.org/10.2139/ssrn.2894222

Shiyi Chen

Fudan University ( email )

Beijing West District Baiyun Load 10th
Shanghai, 100045
China

Wolfgang Karl Härdle (Contact Author)

Blockchain Research Center Humboldt-Universität zu Berlin ( email )

Unter den Linden 6
Berlin, D-10099
Germany

Charles University ( email )

Celetná 13
Dept Math Physics
Praha 1, 116 36
Czech Republic

National Yang Ming Chiao Tung University ( email )

No. 1001, Daxue Rd. East Dist.
Hsinchu City 300093
Taiwan

Asian Competitiveness Institute ( email )

Singapore

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