Economics of Wastewater Management in China’s Industry

Environment and Development Economics, Forthcoming

36 Pages Posted: 10 Jun 2019

See all articles by Yao An

Yao An

City University of Hong Kong (CityUHK)

Lin Zhang

City University of Hong Kong (CityUHK)

Philip Kofi Adom

University of Professional Studies - Department of Banking and Finance

Date Written: May 23, 2019

Abstract

This article provides an economic investigation into the underlying causes of industrial wastewater emissions. We examine the direct and the structural break-induced effect of national environmental regulation on industrial wastewater emissions. The results show that strict environmental regulation can partially offset the energy-induced effects imposed by the scale effects of foreign direct inflows and cause positive behavioral responses by either limiting coal usage or improving upon coal usage technology and shift towards clean energy sources. We find the absence of scale economies in the provision of environmental services in the industrial sector due to the poor nature of the technical processes of industries. We further highlight the importance of raising the investment in environmental treatment and embracing trade liberalization in the improvement of industrial wastewater management.

Keywords: Wastewater management, Environmental regulation, Investment, Trade liberalization

Suggested Citation

An, Yao and Zhang, Lin and Adom, Philip Kofi, Economics of Wastewater Management in China’s Industry (May 23, 2019). Environment and Development Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3392822

Yao An

City University of Hong Kong (CityUHK) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Lin Zhang (Contact Author)

City University of Hong Kong (CityUHK) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Philip Kofi Adom

University of Professional Studies - Department of Banking and Finance ( email )

Accra
Ghana

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