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ORIGINAL RESEARCH article

Front. Environ. Sci.

Sec. Environmental Economics and Management

Volume 13 - 2025 | doi: 10.3389/fenvs.2025.1679971

Command-driven vs Market-oriented Environmental Regulations:Impacts on High-Quality Development of Manufacturing Industry

Provisionally accepted
  • 1Shanghai University of Finance and Economics, Shanghai, China
  • 2Shanghai Normal University, Shanghai, China

The final, formatted version of the article will be published soon.

The manufacturing industry is a key area of environmental regulation.However,whether command-driven and market-oriented environmental regulations exert heterogeneous impacts on the high-quality development of the manufacturing industry (HQDM) remains underexplored.This study treats the command-driven low-carbon city pilot policy and the market-oriented carbon emissions trading pilot policy as "quasi-natural experiments".Firm-level data of listed manufacturing enterprises spanning 2003-2021, it adopts the double machine learning method to evaluate the influence of heterogeneous environmental regulations on the HQDM. The findings show that the low-carbon city pilot policy significantly inhibits the HQDM, whereas the carbon emissions trading pilot policy significantly promotes it.The effect of market-oriented environmental regulation on the HQDM is primarily achieved through the mechanism of technological innovation. In regions where both the low-carbon city pilot policy and the carbon emissions trading pilot policy are implemented, both command-driven and market-oriented regulations boost the HQDM,signifying a synergistic effect between them.Further heterogeneity analysis shows that the results for eastern and western areas, state -owned firms, and technology-intensive manufacturing sectors align with the baseline regression results. The conclusions of this study provide important references for the selection of carbon reduction policies, formulating differentiated emission reduction measures.

Keywords: command-driven environmental regulation, Market-oriented environmental regulation, low-carbon city pilot policy, carbon emissions trading pilot policy, high-quality development of manufacturing industry, Double machine learning

Received: 05 Aug 2025; Accepted: 16 Oct 2025.

Copyright: © 2025 Lin, wang and liu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

* Correspondence: keqiang wang, kqiangw@163.com

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