Greening to grow: Evidence from environmental regulation and industrial firm productivity in China
Greening to Grow: Evidence from Environmental Regulation and Industrial Firm Productivity in China 1. Meaning “Greening to Grow” refers to the concept that environmental regulation (policies to reduce pollution and emissions) can actually enhance economic growth and firm productivity , rather than hinder it. Traditionally, environmental regulations were viewed as a cost burden on firms. However, modern economic theory—especially the Porter Hypothesis —suggests that such regulations can stimulate innovation, efficiency, and competitiveness . In the Chinese context, this idea is particularly important because: China is one of the largest industrial economies and carbon emitters It is transitioning toward sustainable and green development 2. Introduction China’s rapid industrialization has led to: High economic growth Severe environmental degradation To address this, the government introduced stringent environmental regulations , including: Emission control...