Non-linear effects of heterogeneous environmental regulations on green growth in G20 countries: Evidence from panel threshold regression

A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and decision-making. This paper combines hybrid measure with Global Malmquist Luenberger index to estimate national green growth level. A panel threshold re...

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Published in:The Science of the total environment Vol. 660; pp. 1346 - 1354
Main Authors: Wang, Xiaoling, Shao, Qinglong
Format: Journal Article
Language:English
Published: Netherlands Elsevier B.V 10.04.2019
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ISSN:0048-9697, 1879-1026, 1879-1026
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Abstract A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and decision-making. This paper combines hybrid measure with Global Malmquist Luenberger index to estimate national green growth level. A panel threshold regression technique is then employed to observe the non-linear impacts of both the formal and informal environmental regulations on green growth in Group 20 countries during 2001–2015. Results from empirical tests reveal that, for the formal environmental regulations represented by Environmental Policy Stringency (EPS), the market-based EPS is only significant at high-level phase while this is not the case in the low-level counterpart; non-market based EPS witnessed significant signs across the three phases, but in varied coefficients and significance levels. By comparison, the informal environmental regulations represented by environmental-related technologies and education levels show positive and significant impact on green growth, except for the case when countries have higher level of technologies. In addition, income per capita and gross Research & Development (R&D) expenditures present significant positive impacts on the dependent while share of service sector to the economy and investment on transport infrastructure witnessed negative effects across the models. Policy implications are proposed thereafter, although both the formal and informal environmental regulations are important to promote green growth, but they show different impacts at different phases. [Display omitted] •A global Malmquist Luenberger index has been employed to measure green growth.•Non-linear regulation-growth nexus has been examined by panel threshold model.•Environmental Policy Stringency show significant positive effects on green growth.•Education exerts larger impact on green growth than environmental-related technologies.
AbstractList A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and decision-making. This paper combines hybrid measure with Global Malmquist Luenberger index to estimate national green growth level. A panel threshold regression technique is then employed to observe the non-linear impacts of both the formal and informal environmental regulations on green growth in Group 20 countries during 2001–2015. Results from empirical tests reveal that, for the formal environmental regulations represented by Environmental Policy Stringency (EPS), the market-based EPS is only significant at high-level phase while this is not the case in the low-level counterpart; non-market based EPS witnessed significant signs across the three phases, but in varied coefficients and significance levels. By comparison, the informal environmental regulations represented by environmental-related technologies and education levels show positive and significant impact on green growth, except for the case when countries have higher level of technologies. In addition, income per capita and gross Research & Development (R&D) expenditures present significant positive impacts on the dependent while share of service sector to the economy and investment on transport infrastructure witnessed negative effects across the models. Policy implications are proposed thereafter, although both the formal and informal environmental regulations are important to promote green growth, but they show different impacts at different phases.
A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and decision-making. This paper combines hybrid measure with Global Malmquist Luenberger index to estimate national green growth level. A panel threshold regression technique is then employed to observe the non-linear impacts of both the formal and informal environmental regulations on green growth in Group 20 countries during 2001-2015. Results from empirical tests reveal that, for the formal environmental regulations represented by Environmental Policy Stringency (EPS), the market-based EPS is only significant at high-level phase while this is not the case in the low-level counterpart; non-market based EPS witnessed significant signs across the three phases, but in varied coefficients and significance levels. By comparison, the informal environmental regulations represented by environmental-related technologies and education levels show positive and significant impact on green growth, except for the case when countries have higher level of technologies. In addition, income per capita and gross Research & Development (R&D) expenditures present significant positive impacts on the dependent while share of service sector to the economy and investment on transport infrastructure witnessed negative effects across the models. Policy implications are proposed thereafter, although both the formal and informal environmental regulations are important to promote green growth, but they show different impacts at different phases.A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and decision-making. This paper combines hybrid measure with Global Malmquist Luenberger index to estimate national green growth level. A panel threshold regression technique is then employed to observe the non-linear impacts of both the formal and informal environmental regulations on green growth in Group 20 countries during 2001-2015. Results from empirical tests reveal that, for the formal environmental regulations represented by Environmental Policy Stringency (EPS), the market-based EPS is only significant at high-level phase while this is not the case in the low-level counterpart; non-market based EPS witnessed significant signs across the three phases, but in varied coefficients and significance levels. By comparison, the informal environmental regulations represented by environmental-related technologies and education levels show positive and significant impact on green growth, except for the case when countries have higher level of technologies. In addition, income per capita and gross Research & Development (R&D) expenditures present significant positive impacts on the dependent while share of service sector to the economy and investment on transport infrastructure witnessed negative effects across the models. Policy implications are proposed thereafter, although both the formal and informal environmental regulations are important to promote green growth, but they show different impacts at different phases.
A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and decision-making. This paper combines hybrid measure with Global Malmquist Luenberger index to estimate national green growth level. A panel threshold regression technique is then employed to observe the non-linear impacts of both the formal and informal environmental regulations on green growth in Group 20 countries during 2001–2015. Results from empirical tests reveal that, for the formal environmental regulations represented by Environmental Policy Stringency (EPS), the market-based EPS is only significant at high-level phase while this is not the case in the low-level counterpart; non-market based EPS witnessed significant signs across the three phases, but in varied coefficients and significance levels. By comparison, the informal environmental regulations represented by environmental-related technologies and education levels show positive and significant impact on green growth, except for the case when countries have higher level of technologies. In addition, income per capita and gross Research & Development (R&D) expenditures present significant positive impacts on the dependent while share of service sector to the economy and investment on transport infrastructure witnessed negative effects across the models. Policy implications are proposed thereafter, although both the formal and informal environmental regulations are important to promote green growth, but they show different impacts at different phases. [Display omitted] •A global Malmquist Luenberger index has been employed to measure green growth.•Non-linear regulation-growth nexus has been examined by panel threshold model.•Environmental Policy Stringency show significant positive effects on green growth.•Education exerts larger impact on green growth than environmental-related technologies.
Author Wang, Xiaoling
Shao, Qinglong
Author_xml – sequence: 1
  givenname: Xiaoling
  surname: Wang
  fullname: Wang, Xiaoling
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  organization: School of Economics & Management, University of Science & Technology Beijing, 100083, China
– sequence: 2
  givenname: Qinglong
  surname: Shao
  fullname: Shao, Qinglong
  email: shao.qinglong@szu.edu.cn
  organization: College of Civil Engineering, Shenzhen University, Shenzhen 518060, China
BackLink https://www.ncbi.nlm.nih.gov/pubmed/30743929$$D View this record in MEDLINE/PubMed
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ISSN 0048-9697
1879-1026
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Keywords Green growth
Threshold effect
Heterogeneous environmental regulations
G20
Language English
License Copyright © 2019 Elsevier B.V. All rights reserved.
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Snippet A comprehensive understanding of the relationships between environmental regulations and green growth of economy is essential for policy design and...
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SubjectTerms decision making
developed countries
educational status
environmental law
environmental policy
G20
Green growth
Heterogeneous environmental regulations
infrastructure
per-capita income
research and development
Threshold effect
Title Non-linear effects of heterogeneous environmental regulations on green growth in G20 countries: Evidence from panel threshold regression
URI https://dx.doi.org/10.1016/j.scitotenv.2019.01.094
https://www.ncbi.nlm.nih.gov/pubmed/30743929
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