Effectiveness of Environmental Policy Integration: Evidence From China’s R&D Policy Reform

Join our climaTRACES Lab workshop

Speaker: Hongyu Nian, Shanghai Jiao Tong University and climaTRACES Lab

This paper examines the environmental policy integration (EPI) that incorporates environmental objectives into the R&D policy, using China’s High and New Technology Enterprise (HNTE) policy as an experiment. We find that, after introducing environmental criteria, polluting firms are less likely to obtain HNTE certification and certified polluting firms reduce R&D investment while enhancing environmental performance. Structural estimates validate these findings, revealing an inverted U-shaped relationship between social welfare and environmental criteria stringency. Policy simulations indicate that EPI outperforms traditional, separate policies, as it promotes greater welfare improvements by encouraging firms to adopt cleaner technology without directly distorting their production decisions.

A light lunch will be provided but bring along your drink of choice.

The weekly climaTRACES workshops, organised by Kamiar Mohaddes and Henning Zschietzschmann, are attended by a diverse group of people from economics, geography, politics, engineering, business, earth sciences, natural sciences and history, generating interdisciplinary discussion. 

No registration required

No registration required. If you have any questions about this seminar, please email Henning Zschietzshmann.

Please note, this workshop is an in-person event but in case you are not able to attend, you can also join the workshop virtually on Zoom.