Search

Environmental decentralization is an institutional factor that influences the effect of ecological environment governance. Based on panel data of provinces in China from 2008 to 2015, this paper evaluates the indicators of environmental decentralization, and uses a fixed-effect model and a threshold model to test the influence of environmental decentralization and environmental regulation on environmental pollution. The results indicate that China's environmental decentralization can significantly curb environmental pollution in general. There is a U-shaped relationship between environmental decentralization and environmental pollution. Reasonable environmental decentralization can restrain environmental pollution, while excessive environmental decentralization aggravates environmental pollution. There is an inverted U-shaped relationship between environmental regulation and environmental pollution. If the intensity of environmental regulation is too low, it cannot inhibit environmental pollution, while if the intensity of environmental regulation is increased to a certain level, it can help to inhibit environmental pollution. The joint impact of environmental decentralization and environmental regulation cannot reduce environmental pollution. That is, with the enlargement of environmental decentralization, environmental regulation fails to reduce environmental pollution. The effect of environmental decentralization has significant regional heterogeneity in economic development level and emission intensity. The above conclusions have important reference value for optimizing the environmental decentralization system and formulating scientific environmental decentralization policies. [ABSTRACT FROM AUTHOR]

The trading of carbon emissions is a crucial regulatory method to address environmental pollution issues. This study takes China's carbon emission trading pilot policy established in 2013 as a quasi-natural experiment and uses the DID model to empirically test the urban panel data from 2006 to 2019. The results show that the carbon emission trading pilot policy can effectively reduce urban environmental pollution, and this effect is more noticeable in mid-western cities, northern cities, cities with fewer resources, and large-scale cities. In addition, to address the urban environmental pollution problem through this policy, the government is encouraged to raise its environmental protection awareness and put more effort into the innovation of technology. In general, this study uses carbon emission trading policies from China to confirm that market-based incentive environmental regulation tools can effectively reduce environmental pollution in urban areas. These findings can provide more theoretical support and empirical evidence for the government to use mechanisms of the market to effectively solve pollution problems, improve ecological environment quality, and accelerate the realization of green economy. • The DID model is used to track pilot policy impact on urban environmental pollution. • Carbon emission trading pilot policy can reduce urban environmental pollution. • The government's environmental awareness is the channel of action. • The government's technological innovation efforts are the channel of action. [ABSTRACT FROM AUTHOR]

As urban agglomerations have become the main spatial organization form in China, it is of great significance to carry out environmental cooperative governance based on urban agglomerations. Research on the interaction of environmental regulation enforcement among cities can provide a new explanation for the competition and cooperation in terms of pollution control in urban agglomerations. This article selected three types of environmental regulation policy tools: market-incentive, command-and-control, and their combinations, and analyzed the interaction pattern of environmental regulations based on the theoretical mechanism derivation and the two zone spatial Durbin model by using the panel data of 103 cities in China. Then, the SLX model was used to explore the impact of the interaction of environmental regulations on the cooperative governance of pollution in five urban agglomerations. The results showed that the market-incentive environmental regulation was not fully implemented, which meant that some cities adopted a 'race to the bottom' strategy in response of the competition with their neighbors. After combining market-incentive environmental regulation with command and-control environmental regulation, the pattern of environmental regulation interaction between cities changed from ' race to the bottom' to 'race to the top'. This interactive characteristic was particularly significant in the Yangtze River Delta and the Chengdu Chongqing urban agglomerations. However, the 'racing to the top' characteristic of these two urban agglomerations had different effects on the intercity environmental cooperation: there was a synergy effect caused by strong spillover effect of environmental regulation implementation in the Yangtze River Delta urban agglomeration rather than in the Chengdu-Chongqing urban agglomeration. [ABSTRACT FROM AUTHOR]

Abstract This paper examines the how new manufacturing firms choose locations in response to the environmental regulations in Jiangsu, China. In particular, we utilize three representative measures of the environmental regulations to test the consistence of the Pollution Haven Hypothesis (PHH). The dramatic results indicate that different measures of environmental regulation lead to different conclusions of the PHH. However, firms' relocation patterns are common and consistent, i.e., new polluting firms are more likely to be driven by the government environmental mandates to northern Jiangsu, where the pollution abatement cost is high. This pattern is consistent with the industrial planning of the province, suggesting that local government may use environmental regulations to achieve economic objectives. More comprehensive and equitable policy design is thus recommended to address the problems of environmental equity in China. Highlights • We examined firms' location choice in response to the environmental regulations. • We utilized three representative measures of the environmental regulations. • We find different measures of environmental regulation lead to different conclusions. [ABSTRACT FROM AUTHOR]

As the pressure of environmental deterioration mounted in recent years, Chinese government has formulated a series of environmental policies and regulations with the intention of improving environmental quality. However, the effectiveness of these environmental regulations have not been carefully examined yet. This study for the first time investigates the effects of environmental regulations on the environmental performance. Using the city-level panel data of 283 Chinese cities for the period 2003–2010 and four indicators for environmental quality (the industrial waste water discharged, industrial SO2 emissions and industrial Soot emissions), this study employs the first-difference GMM method that could deal with potential endogeneity and allow dynamics to conduct the empirical estimations. Overall, the estimation results indicate that current environmental control measures and regulations have not achieved the desired goal of controlling and reducing pollution. Moreover, the direct impact of FDI on China's environment is negative, suggesting that there is evidence for the “Pollution Heaven” hypothesis. The coefficients of the interactive term of environmental regulation and foreign direct investment are estimated to be negative, which indicates that the environmental regulation is effective only when FDI is controlled for. The estimation results are basically consistent for different Chinese regions. [ABSTRACT FROM AUTHOR]

Chinese government adopted a new environmental program during "Eleventh Five-Year Plan" period. Whether this program can achieve its goal of pollution reduction and quality improvement for exports is of vital importance for China's sustainable development. This paper constructs a quasi-difference-in-difference (DID) framework to identify the effects of the new environmental policy on export product quality by using highly disaggregated trade transaction data at the product level. Empirical results show that the implementation of pollution reduction targets is negatively correlated with export product quality. This negative impact is more profound in western regions, capital-intensive industries, privately owned firms and firms exporting to countries which are not members of Organization for Economic Co-operation and Development group. In addition, our extended analysis shows that the negative effects can be mitigated through product switching within the firms. The major policy implication is that local governments should take proper measures to strengthen the effects of innovation offsets caused by environmental regulation and effectively utilize the induced effects of environmental regulation on product switching. The goal is to achieve a win-win outcome for environmental protection and improvement in export product quality. • Pollution reduction enforcement significantly reduces export product quality. • Innovation can be an offsetting force for this negative impact. • The negative effects can be mitigated through product switching within the firms. • There are variations across regions, sectors and ownership. • Environmental regulation should accommodate these differences. [ABSTRACT FROM AUTHOR]

The rapid growth of foreign investment is a double-edged sword, which not only drives China's rapid economic development, but also aggravates China's energy shortage and environmental pollution. Chinese government has strengthened environmental regulations with the intention of restricting the entry of foreign investment, improving the quality of foreign direct investment (FDI). However, the effect of environmental regulation on the quality of FDI has not been carefully examined yet. This study constructs a panel model and uses the panel data of 30 provinces in China from 2009 to 2018 to scrutinize the effect of different types of environmental regulation policies on the quality of FDI. The results show that the strengthening of environmental regulation policies can improve the quality of FDI and avoid making China a "pollution paradise" for FDI. There are significant differences in the effects of different types of such policies on the quality of FDI; the type of administrative supervision and social participation policies play positive roles in improving the quality of FDI. There are also significant differences in the strategies for attracting foreign investment among different regions, as well as in the focuses of their environmental regulation objectives. Therefore, for environmental regulation policies to play a more positive role in promoting the quality of FDI and the high-quality development of the national economy, this study suggests that it is necessary to further implement the policy of opening up to the outside world, optimise foreign investment structures, deepen opening up to the outside world, optimise the structure of foreign investment, deepen the reform of the environmental supervision structure, tighten the law enforcement of environmental protection, seek accurate environmental regulation based on the realities of regional foreign investment development, take multiple measures to improve the business environment to promote the quality and efficiency of foreign investment, and so on. Image 1 • Strict environmental regulation policy can improve the unit scale and unit benefit of FDI. • Distinguish and test the potential effects of different types of environmental policy tools on the quality of FDI. • Administrative supervision policy and social participation policy can improve the quality of FDI more effectively. • Sustained improvement of FDI quality depends on coordinated advances in economic, political, and environmental reforms. [ABSTRACT FROM AUTHOR]

Using firm establishment-level data combined with provincial socio-economic characteristic panel data in China for the period of 2011–2015, this study seeks to empirically examine the impact of environmental regulation on location choices of polluting firms. The results of the conditional logit model provide compelling evidence that environmental regulations do affect the location choice of firms in polluting industries. Instead of supporting the pollution haven effect, our results consistently confirm the Porter effect at the country level. This result is robust when taking endogeneity problem into account, adopting various model specifications and estimation strategies, using alternative measurements of environmental regulation and location choices, and subsampling excluding international political events. However, the results also show divergent effect of environmental regulation on location choices for heterogeneous firms. Specifically, polluting firms in eastern region prefer to invest in provinces with stringent environmental policies but those in other regions, especially in northeastern region, choose to locate in provinces with lax environmental regulation. While water-dependent polluting firms with a low level of footlooseness are more likely to enter locations with loose environmental regulation, air pollution-intensive firms tend to locate in provinces with tight environmental legislation. These results have policy implications for transitional China as well as other developing countries with similar experience. Image 1 • We study the impact of environmental regulation on polluting firms' location choices. • We employ conditional logit model to analyze the firm establishment-level data. • Our results consistently confirm Porter effect rather than pollution haven effect. • The result is robust to consider endogeneity problem and to various robustness tests. • Divergence effect of environmental regulation for heterogeneous firms is also discovered. [ABSTRACT FROM AUTHOR]