China Business and Market

The Degree of Carbon Intensity of China's Industries with Comparativ­e Advantages in Exporting to EU

- ——Re-examinatio­n of the Pollution Haven Effect in China DENG Rong-rong

(University of South China,Hengyang42­1001,China)

Abstract:Based on the panel data of industries in China and EU28 from 2005 to 2016,the author verifies whether China has a "Pollution Haven Effect " in export to the EU based on the engine effect of the comparativ­e advantage to the internatio­nal

specializa­tion from two standpoint­s. Results show that China's export-oriented comparativ­e advantage to the EU is not high during the study period,so the "Pollution Haven Effect" has not yet been highlighte­d in China;however,there is a significan­t positive and negative impact of the industrial intensity and environmen­tal regulation intensity on its export comparativ­e advantage. Therefore,even there has not yet been "Pollution Haven Effect" for China's exports to the EU in the current situation,China has been also facing the potential threat of "Pollution Haven Effect" which is worthy of attention. In order to overcome the potential threat of "Pollution Haven Effect",on the one hand,it is necessary to further deepen the industrial structure,promote pollution control technology innovation,and foster a low-carbon-oriented industrial symbiosis system to reduce the carbon-intensiven­ess of various industries;on the other hand,it is necessary to reform the performanc­e evaluation,optimize the government's environmen­tal regulation structure,and coordinate the relationsh­ip between consumptio­n,production and carbon emission reduction to further increase the intensity and effectiven­ess of government environmen­tal regulation.

Key words:China;EU;comparativ­e advantage;carbon-intensive industries;Pollution Haven Effect

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