Does Environmental Regulation Improve Carbon Emission Efficiency? Inspection of Panel Data from Inter-Provincial Provinces in China

Abstract

This study aims to analyze the nonlinear relationship between environmental regulation and carbon emission efficiency and provide scientific reference for achieving the goal for carbon neutrality at a lower cost. Taking 30 provinces in China, using dual carbon policy as the research objects, the slacks-based measure–Malmquist–Luenberger (SBM–ML) index method was used to measure the carbon emission efficiency from 2009 to 2019 and a panel threshold regression model was established to explore the nonlinear effects of environmental regulation and carbon emission efficiency in each province. The results show that: (1) during the sample period, there is geographical variability in CEE, with the eastern coastal provinces having the highest CEE, followed by the central and western provinces, and the resource-dependent provinces having the lowest CEE and their energy consumption and utilization efficiency being significantly lower than other provinces; (2) when the energy consumption intensity is used as a threshold variable, the relationship between environmental regulation and carbon emission rate is an inverted “U” shape; and (3) when green technology innovation is used as a threshold variable, the relationship between environmental regulation and carbon emission rate is a “U” shape. This study provides a new perspective for improving carbon emission efficiency.