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A causality analysis of public participation, government regulation and environment pollutions using regional panel data

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Peng W.-B., Tian K., Tian Y.-H., Guo-Cheng X.
Perspectives of Innovations, Economics and Business
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2011
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vol. 8
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issue 2
53-56
EN
Utilizing the regional data of China covering 29 provinces and municipalities during 1990-2009, this article outlines a systematic approach to investigate the relations between public participation, government regulation and environment pollutions. Results show that government regulation influences environment pollutions while environment pollutions have no influence on government regulation in the short term. Besides, environment pollutions and public participation have no influence on each other. In the long term, there exists the granger causality among public participation, government regulation and environment pollutions. Our results also show that improving the public participation’s ability in environmental protection and strengthening government regulation’s intensity are the basic measures to improve China's environmental pollution in the long run.
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VAR analysis of foreign direct investment and environmental regulation: China's case

100%
Peng W.-B., Tian K., Tian Y.-H., Xiang G.-C.
Business and Economic Horizons
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2011
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vol. 5
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issue 2
13-22
EN
This paper employs impulse response function of VAR model and the estimation variance decomposition method to investigate the two-way dynamic relationship between environmental regulation and FDI during 1985 to 2009. The result of generalized impulse response shows the impact effects of environmental regulation exerting to FDI become less and less in long-term, which verifies “hypothesis of pollution heaven”. The inverse U-shape curve of “environmental regulation - FDI” depends on the choice of regulation indicators. Furthermore, the positive impulse response shows the inflows of FDI would cause the deterioration of ecology and the intervene of governments, which gives pressure to the transformation of environmental regulation standard
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