The Threshold Effects of Enterprises' Partial Privatization on Environmental Pollution
- DU Wencui，NIU Haipeng & ZHANG Pingdan
DU Wencui (Capital University of Economics and Business)
NIU Haipeng (Renmin University of China)
ZHANG Pingdan (Beijing Normal University)
Using industrial panel data of 34 industries from 2005 to 2013 in China, the relationship between partial privatization and water environmental pollution was examined. Overall, the higher the state-owned proportion is, the lower the level of partial privatization is, and the lower the density of water pollution emission will be. The result of threshold effect indicated that, regardless of the state-owned proportion, the increasing of state-owned proportion would be helpful for environmental improvement. The only difference was the degree. When the water pollution density is low, the partial privatization was good for water pollution density reduction. However, when the water pollution density is high, nationalization was the best choice to alleviate environmental pollution. Thus, the environmental protection responsibility of state-owned corporations should not be ignored in the process of reform. Also, we should not give up the ecological environment for economic value.
JEL：Q56, P14, L60
- Partial Privatization, Environmental Pollution, Threshold Effect