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Economics of wastewater management in China's industry

Published online by Cambridge University Press:  19 July 2019

Yao An ,
Lin Zhang  and
Philip Kofi Adom
Yao An
Affiliation:
School of Energy and Environment, City University of Hong Kong, Kowloon, Hong Kong
Lin Zhang*
Affiliation:
School of Energy and Environment, City University of Hong Kong, Kowloon, Hong Kong
Philip Kofi Adom
Affiliation:
Department of Development Policy, School of Public Services and Governance, Ghana Institute of Management and Public Administration (GIMPA), Ghana
*
*Corresponding author. E-mail: [email protected]
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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

environmental regulationinvestmenttrade liberalizationwastewater management
Type
Research Article
Information
Environment and Development Economics , Volume 24 , Issue 5 , October 2019 , pp. 457 - 478
Copyright
Copyright © Cambridge University Press 2019 

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