In China, currently established measures of the development of
lowcarbon production have focused on financial support, such as tax
abatement or loans, but the results indicated subsidies are inefficient
instruments. On the other hand, there is a need to design support
instruments based on the particular characteristics of sector rather
than to offer generic solutions (Kanda et al., 2013), however, in China,
some of the environmental regulations were out of date, with little
concrete reference to climate change or low carbon production
guidelines (Liu, 2014).It appears from the present study that the effects
of regulatory systems are not overshadowed by other factors.
Stricter regulatory and fee systemsmay stillwork to some extent. But
firms with a high environmental commitment and capability can be
expected to be self-regulatingwhen basic compliance is not an issue;
a regulatory system cannot have a long term positive effect in
decreasing the carbon emissions of firms