Can the joint regional air pollution control policy achieve a win-win outcome for the environment and economy? Evidence from China

Abstract

We explore the effect of the Joint Prevention and Control System of Regional Air Pollution (JPCSRAP) in China from a composite environmental-economic perspective, based on Chinese urban data, using the PSM-DID method. We find that JPCSRAP can achieve a win-win outcome for the environment and economy, namely by reducing air pollution while achieving economic growth, with these effects increasing over time. However, the implementation effects differ by region. The effects of JPCSRAP are due to the strengthening of collaborative governance between cities, the upgrading of the industrial structure, and the encouragement of technological innovation. Our research provides an important reference for developing countries to achieve effective air pollution control and economic growth. • We study China’s Joint Prevention and Control System of Regional Air Pollution. • The JPCSRAP can achieve a win-win outcome for both the environment and the economy. • There is spatial and temporal heterogeneity in the policy effects of JPCSRA. • JPCSRAP strengthens the collaborative governance between cities. • JPCSRAP upgrades industrial structure and encourages technological innovation.