Does the Environmental Regulation Affect Chinese Industries’ Profits?
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| Title | Does the Environmental Regulation Affect Chinese Industries’ Profits?
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| Author | Li Xiaoping Lu Xianxian and Tao Xiaoqing |
| Organization | Zhongnan University of Economics and Law |
| Email | chineselixp@126.com |
| Key Words | Environmental Regulation; Profits ; International Competitiveness. |
| Abstract | Environmental regulation is one important reason of affecting one country’s competitiveness. How does environmental regulation affect China industrial profits? The paper constructs the model which one country’s optimal environmental regulation policies affects its industry profits , and using the indexes measuring environmental regulation, we analyses how the variables such as environmental regulation influence on China industries’ profits empirically. We found that when there is incomplete information and the incentive compatible constraint conditions, a government will be implemented strict environmental regulation, strict environmental regulation will improve its enterprise’s profitability. |
| Serial Number | WP170 |
| Time | 2012-02-14 |
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