The effects of three types of environmental regulation on eco-efficiency: A cross-region analysis in China

The improvement of regional eco-efficiency is a significant approach to achieve coordinated development of China's economic development and environmental protection, and an effective environmental regulation system is a crucial driver to the improvement of regional eco-efficiency. Based on the panel data of China's 30 provinces during 2000-2013, this paper divides environmental regulation into three types: command-and-control regulation, market-based regulation and voluntary regulation. STIRPAT model is employed to test the effects of these three environmental regulations on eco-efficiency in the eastern, central and western regions of China. Research results turn out that: (1) in the eastern region, market-based and voluntary environmental regulation have a positive impact on eco-efficiency improvement while command-and-control environmental regulation has no significant impact, and (2) in the central region, command-and-control and market-based environmental regulation can promote eco-efficiency more significantly compared with voluntary environmental regulation, and (3) in the western region, command-and-control environmental regulation plays a positive role in eco-efficiency improvement whilst market-based and voluntary environmental regulation have no significant impacts. These findings indicate that the effects of different types of environmental regulation on eco-efficiency apparently differ in regions. Finally, to optimize and adjust the environmental regulation tools, policy recommendations targeting different regions are concluded.