Could environmental regulations improve the quality of export products? Evidence from China's implementation of pollutant discharge fee

This study investigates the effect of Chinese environmental regulations on the quality of export products. As the main way for the government to protect the environment, environmental regulations have greatly influenced the production behavior of enterprises. Based on the data of China's pollutant discharge fee implementation and industrial enterprise-pollution panel data, we find that the government's environmental regulations have significantly improved the quality of export products, and this conclusion is still valid after a series of robustness tests. Further analysis shows that the increase in the quality of export products originating from the regulated areas could be attributed to promoting enterprise innovation and reducing resource misallocation. The results in this study provide evidence that the Chinese government could coordinate economic and environmental protection in the new era.