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Unintended Innovation Consequences of Skirting the Environmental Regulation: Evidence from the Food Processing Industry in China

Falin Sun et al.

Journal of Agricultural and Applied Economics2026https://doi.org/10.1017/aae.2026.10036article
AJG 1ABDC C
Weight
0.50

What the paper says

Abstract This paper uses China’s 2016 Pollutant Discharge Permits System (PDPS) to evaluate its impact on innovation in the food processing industry. We begin by exploring the entry and exit decisions of food processing firms. The findings suggest that stricter environmental enforcement following the PDPS leads to decreased local firm entry but increased neighboring firm entry, indicating that new firms tend to locate in neighboring regions with less stringent regulations. Building upon this pattern, we argue that the PDPS’s positive impact on firm innovation is primarily driven by increased industry agglomeration – a dynamic directly stimulated by heterogeneous regulatory pressures.

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https://doi.org/https://doi.org/10.1017/aae.2026.10036

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@article{falin2026,
  title        = {{Unintended Innovation Consequences of Skirting the Environmental Regulation: Evidence from the Food Processing Industry in China}},
  author       = {Falin Sun et al.},
  journal      = {Journal of Agricultural and Applied Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1017/aae.2026.10036},
}

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Unintended Innovation Consequences of Skirting the Environmental Regulation: Evidence from the Food Processing Industry in China

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.