eprintid: 10166222 rev_number: 9 eprint_status: archive userid: 699 dir: disk0/10/16/62/22 datestamp: 2023-03-10 11:25:03 lastmod: 2023-03-10 11:25:03 status_changed: 2023-03-10 11:25:03 type: article metadata_visibility: show sword_depositor: 699 creators_name: Feng, Tong creators_name: Chen, Xinyu creators_name: Ma, Jie creators_name: Sun, Yuechi creators_name: Du, Huibin creators_name: Yao, Ye creators_name: Chen, Zhenni creators_name: Wang, Shidong creators_name: Mi, Zhifu title: Air pollution control or economic development? Empirical evidence from enterprises with production restrictions ispublished: pub divisions: UCL divisions: B04 divisions: C04 keywords: Air pollution, Economic performance, Industrial enterprise, Production restrictions note: © 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). abstract: Production restriction is an environmental regulation adopted in China to curb the air pollution of industrial enterprises. Frequent production restrictions may cause economic losses for enterprises and further hinder their green transformation. Polluting enterprises are faced with the dilemma of choosing environmental protection or economic development. Using panel data on industrial enterprises in China from 2016 to 2019, this paper evaluates the impact of production restrictions on both enterprises' environmental and economic performance with regression models. The results show that production restrictions significantly drop the concentrations of SO2 and NOx emitted from polluting enterprises. Meanwhile, production restrictions have significant negative effects on operating income, financial expenses, net profit, and environmental protection investment. The mechanism analysis reveals that production restrictions mitigate air pollutant concentrations by increasing the number of green patents and improving total factor productivity, which also verifies the Porter hypothesis. However, there is a masking mediating effect of environmental investment, which indicates that the reduction of environmental investment hinders the enterprise's efforts to control air pollution. In addition, heterogeneous analysis shows that the economic shock on microenterprises is larger than that on small enterprises. Implementing production restrictions for microenterprises may be a way to eliminate their backwards production capacity. date: 2023-03-04 date_type: published publisher: Elsevier BV official_url: https://doi.org/10.1016/j.jenvman.2023.117611 oa_status: green full_text_type: pub language: eng primo: open primo_central: open_green verified: verified_manual elements_id: 2009865 doi: 10.1016/j.jenvman.2023.117611 medium: Print-Electronic pii: S0301-4797(23)00399-7 lyricists_name: Mi, Zhifu lyricists_id: ZMIXX58 actors_name: Mi, Zhifu actors_id: ZMIXX58 actors_role: owner full_text_status: public publication: Journal of Environmental Management volume: 336 article_number: 117611 event_location: England citation: Feng, Tong; Chen, Xinyu; Ma, Jie; Sun, Yuechi; Du, Huibin; Yao, Ye; Chen, Zhenni; ... Mi, Zhifu; + view all <#> Feng, Tong; Chen, Xinyu; Ma, Jie; Sun, Yuechi; Du, Huibin; Yao, Ye; Chen, Zhenni; Wang, Shidong; Mi, Zhifu; - view fewer <#> (2023) Air pollution control or economic development? Empirical evidence from enterprises with production restrictions. Journal of Environmental Management , 336 , Article 117611. 10.1016/j.jenvman.2023.117611 <https://doi.org/10.1016/j.jenvman.2023.117611>. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/10166222/2/Mi_1-s2.0-S0301479723003997-main.pdf