Environmental regulation and marine economic resilience: An institutional synergy perspective.

ABSTRACT

Growing economic and industrial activities have put a large strain on the marine environment and ecosystem, presenting the marine economy with a tradeoff between economic expansion and environmental conservation. Though the Porter hypothesis depicts a win-win situation, it is crucial to consider the conditions under which environmental regulations generate positive effects. This paper is to study how the synergy between market-based and government-based environmental regulations affects marine economic resilience, whereas maintaining economic resilience is a prerequisite for promoting innovation and productivity. The findings indicate that each 1 % increase in the synergistic level of environmental regulations resulted in a 0.234 % improvement in marine economic resilience. The heterogeneity tests indicate that the relationship is still significant if the marine economy characterizes high industrial diversity, high industrial upgrading, and large scale, while environmental regulation in coastal provinces that marine industrial structure is not advanced negatively affects marine economic resilience.