Can environmental regulation solve the carbon curse of natural resource dependence: Evidence from China

Abstract

Expanding the new application of resource curse theory in the field of environment effects and paying attention to whether China's economic development is facing a carbon curse and how to solve it are of great practical significance for China's green economic transformation. Firstly, this paper constructs two indicators, namely, resource economic dependence and resource employment dependence, to measure the dependence of natural resources in China. Secondly, we test the existence of the carbon curse phenomenon at the city level through the GMM method. Thirdly, based on the resource endowment and development stage, this paper focuses on the heterogeneous characteristics of the carbon curse at the urban level. Finally, environmental regulation is included in the analysis framework to determine whether it can help solve the carbon curse. The results show that firstly, the carbon curse is widespread in cities across the country, that is, the dependence on natural resources represented by resource economic dependence and resource employment dependence can significantly affect carbon emission intensity. Secondly, the carbon curse is concentrated in resource-based cities. Amongst them, cities relying on coal, metal and oil–gas have more prominent features of the carbon curse, whereas non-resource-based cities have not yet generally observed this phenomenon. Thirdly, the carbon curse continues to exist at all stages of urban development, but has a declining trend in the time dimension. Finally, environmental regulation can effectively solve the carbon curse and alleviate the rising carbon intensity caused by resource dependence.