The Determinants of Pollution Levels: Firm-Level Evidence from Chinese Manufacturing

59 Pages Posted: 8 Sep 2011 Last revised: 6 Oct 2014

See all articles by Liangliang Jiang

Liangliang Jiang

Hong Kong Polytechnic University

Chen Lin

The University of Hong Kong - Faculty of Business and Economics

Ping Lin

Lingnan University - Department of Economics

Date Written: August 2, 2013

Abstract

Using a large, unique, firm-level dataset from the Chinese manufacturing sector, we study important factors that are related to emission intensity for three pollutants in China – sulfur dioxide, wastewater, and soot. Our main findings are as follows: 1) compared to state-owned enterprises (SOEs), both foreign-owned firms and domestic public-listed firms exhibit less intensive pollutant emissions; 2) firms in regions with less local protection have lower pollution intensity; 3) better property rights protection is negatively correlated with pollutant discharge over and beyond the national standards; and 4) larger firms, firms in industries that export more, and firms with more educated employees pollute less. These results suggest that China should not target foreign firms more harshly in its effort to reduce industrial pollution. Better institutions in the form of more effective law enforcement and lower entry barriers across regional markets are also means of curbing China’s pressing environmental problems during its current stage of economic development.

Keywords: Pollution, FDI, Local protection, Law enforcement

JEL Classification: L60, O13, Q53

Suggested Citation

Jiang, Liangliang and Lin, Chen and Lin, Ping, The Determinants of Pollution Levels: Firm-Level Evidence from Chinese Manufacturing (August 2, 2013). Journal of Comparative Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1924343 or http://dx.doi.org/10.2139/ssrn.1924343

Liangliang Jiang (Contact Author)

Hong Kong Polytechnic University ( email )

11 Yuk Choi Rd
Hung Hom
Hong Kong

Chen Lin

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Ping Lin

Lingnan University - Department of Economics ( email )

135 Xingang Xi Road
Tuen Mun
Guangzhou, Guangzhou 510275
China
(852)2616 7203 (Phone)
(852)2891 7940 (Fax)

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