The impact of environmental regulation on carbon emissions: Evidence from China.

Carbon dioxide (CO 2) emissions and climate change risk have become constraints on global economic sustainable development. Environmental regulation (ER) is a key method for achieving synergy in CO 2 and pollution reduction in China. This paper is the first study to explore the effects of ER on CO 2 emissions by exploiting the National Environmental Protection 11th Five-Year Plan (NEP11-FYP). The implementation of the NEP11-FYP significantly decreases CO 2 emissions by 19.73% in key environmental cities relative to other cities. Heterogeneity analyses suggest that this negative impact is larger in western cities and cities with more pressure to reduce CO 2 emissions. Scale effects, structural effects, and technical effects might be three potential influencing channels through which ER contributes to the CO 2 reduction effect. In addition, the results of the spatial externality of the NEP11-FYP demonstrate a positive spillover effect in neighboring cities within a distance of 300 km and a negative spillover effect in cities more than 500 km away. Our empirical findings provide policy implications for implementing low-carbon transition strategies and reducing CO 2 emissions. [ABSTRACT FROM AUTHOR]