The Relationship between Trade Liberalization and Environmental Pollution across Enterprises with Different Levels of Viability in China

This study investigates the varying effects of trade liberalization on environmental pollution from the perspective of enterprise viability. We find that trade liberalization significantly reduces pollution emissions, and the environmental effect on low viability and high viability enterprises varies. Our results also indicate that the emissions trading policy enhances the abating effect of trade liberalization on environmental pollution in both high viability and low viability enterprises, whereas the voluntary environmental policy reduces this effect. This study not only extends the applicability of new structural economics but also presents empirical evidence for further market opening and actions to improve the environment.

Automated summary

The study found that trade liberalization significantly reduces pollution emissions and has varying effects on enterprise viability. In addition, emissions trading policy enhances the abating effect of trade liberalization on environmental pollution, while voluntary environmental policy reduces this effect.