Does the Water Rights Trading Policy Improve Water-Use Efficiency? An Environmental Policy Evaluation from China
Abstract
:1. Introduction
2. Theoretical Mechanisms
3. Materials and Methods
3.1. Model Setting
3.2. Sample and Data
3.3. Variable Selection
3.3.1. Dependent Variable
3.3.2. Independent Variable
3.3.3. Control Variables
3.3.4. Channel Variables
4. Results and Discussion
4.1. Benchmark Regression Results
4.2. Robustness Tests
4.2.1. Parallel Trend Test
4.2.2. Placebo Test
4.2.3. PSM-DID Model
4.2.4. Other Robustness Tests
- (1)
- Expected effects test
- (2)
- Controlling for other policy impacts
- (3)
- Excluding the impact of provincial water rights pilots
- (4)
- Replacing the dependent variable
- (5)
- Inclusion of benchmark variables to mitigate selection effects
5. Mechanism and Heterogeneity Analysis
5.1. Mechanism Analysis
5.2. Heterogeneity Analysis
6. Conclusions and Outlook
6.1. Conclusions and Recommendations
6.2. Research Outlook
6.2.1. Synergies between Water Rights Trading Policy and Water Resources Tax Policy
6.2.2. Exploring International Water Rights Trading
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable Type | Variables | Symbol | Mean | SD | Min | Max | Median |
---|---|---|---|---|---|---|---|
Dependent variable | Water-use efficiency (water consumption per unit of GDP) | WUE | 206.1999 | 233.6903 | 16.0326 | 1952.6225 | 135.6421 |
Independent variable | Water rights trading policy (1 if a province pilots a water rights trading policy, 0 otherwise) | WRT | 0.2333 | 0.4234 | 0.0000 | 1.0000 | 0.0000 |
Control variables | Economic development level (real GDP per capita) | economic | 3.6607 | 2.3115 | 0.5306 | 13.4626 | 3.1201 |
Water resource endowment (water supply per capita) | water | 506.3816 | 418.2610 | 161.2000 | 2657.4000 | 436.1500 | |
Industrial structure (share of value added of the secondary industry in GDP) | industrial | 44.5576 | 8.7548 | 15.8337 | 61.4777 | 45.9142 | |
Trade openness (total exports and imports/GDP) | openness | 0.2874 | 0.3237 | 0.0071 | 1.7085 | 0.1486 | |
Channel variables | Technological innovation (R&D expenditure per capita for industrial enterprises above designated size) | technology | 642.9264 | 630.5500 | 10.2670 | 3194.0084 | 398.4043 |
Industrial structure upgrading (industrial structure hierarchy coefficient) | upgrade | 2.3426 | 0.1346 | 2.0722 | 2.8357 | 2.3205 |
Variable | WUE | |
---|---|---|
(1) | (2) | |
WRT | −0.0224 ** | −0.0077 *** |
(−2.49) | (−3.75) | |
economic | −0.8570 *** | |
(−9.47) | ||
water | 0.8500 *** | |
(24.74) | ||
industrial | −0.2340 *** | |
(−6.54) | ||
openness | −0.4188 *** | |
(−11.30) | ||
_cons | 5.7090 *** | 2.3552 *** |
(3.23 × 1014) | (8.63) | |
Year FE | Yes | Yes |
Province FE | Yes | Yes |
N | 510 | 510 |
Adjusted R2 | 0.9709 | 0.9932 |
Variable | WUE | |||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
WRT | −0.0040 * | −0.0073 *** | −0.0122 *** | −0.0118 *** | −0.0453 * | −0.0099 ** |
(−2.04) | (−3.79) | (−3.28) | (−3.44) | (−1.80) | (−2.36) | |
pre-WRT | −0.0004 | |||||
(−0.31) | ||||||
_cons | 2.3396 *** | 2.3552 *** | 2.7433 *** | 2.7416 *** | 2.8146 ** | 2.6828 *** |
(9.66) | (8.63) | (11.54) | (10.42) | (2.40) | (9.56) | |
Control variables | Yes | Yes | Yes | Yes | Yes | Yes |
Baseline variable × time trend | No | No | No | No | No | Yes |
Year FE | Yes | Yes | Yes | Yes | Yes | Yes |
Province FE | Yes | Yes | Yes | Yes | Yes | Yes |
N | 480 | 510 | 340 | 320 | 510 | 510 |
Adjusted R2 | 0.9935 | 0.9932 | 0.9935 | 0.9940 | 0.8778 | 0.9940 |
Variable | Technology | WUE | Upgrade | WUE |
---|---|---|---|---|
(1) | (2) | (3) | (4) | |
WRT | 0.1356 * | −0.0059 ** | 0.0042 *** | −0.0070 ** |
(1.82) | (−2.61) | (4.91) | (−2.83) | |
Technology | −0.0133 * | |||
(−2.08) | ||||
upgrade | −0.1558 | |||
(−1.12) | ||||
_cons | −5.1310 | 2.2870 *** | 1.1838 *** | 2.5396 *** |
(−1.52) | (8.49) | (17.66) | (8.44) | |
Control variables | Yes | Yes | Yes | Yes |
Year FE | Yes | Yes | Yes | Yes |
Province FE | Yes | Yes | Yes | Yes |
N | 510 | 510 | 510 | 510 |
Adjusted R2 | 0.7851 | 0.9934 | 0.8802 | 0.9932 |
Intermediary effect | −0.0018 | - | ||
Direct effect | −0.0059 | - | ||
Total effect | −0.0077 | - | ||
Intermediation effect as a percentage | 23.38% | - |
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He, N.; Shi, Y.; Ding, R. Does the Water Rights Trading Policy Improve Water-Use Efficiency? An Environmental Policy Evaluation from China. Sustainability 2024, 16, 3454. https://doi.org/10.3390/su16083454
He N, Shi Y, Ding R. Does the Water Rights Trading Policy Improve Water-Use Efficiency? An Environmental Policy Evaluation from China. Sustainability. 2024; 16(8):3454. https://doi.org/10.3390/su16083454
Chicago/Turabian StyleHe, Naiming, Ying Shi, and Rijia Ding. 2024. "Does the Water Rights Trading Policy Improve Water-Use Efficiency? An Environmental Policy Evaluation from China" Sustainability 16, no. 8: 3454. https://doi.org/10.3390/su16083454