Abstract
How environmental regulations affect the transfer of pollution-intensive industries is the core issue of balanced regional development and pollution reduction in China. This paper analyses the theoretical mechanism of the impact of environmental regulation on industrial transfer based on the distinction between formal environmental regulation and informal environmental regulation. To this aim, the paper selects panel data of 30 provinces in China from 2008 to 2018 and uses the fixed effect econometric model to test the impact of environmental regulation on the transfer of pollution-intensive industries, then uses a threshold regression model to study the threshold characteristics and spatial heterogeneity of environmental regulation on pollution-intensive industrial transfer. The results show a significant inverted U-shaped relationship between formal environmental regulation and the transfer of pollution-intensive industries. The increase of formal environmental regulation intensity affects restraining and then promoting the transfer out of pollution-intensive industries. The promoting effect also shows the characteristics of first increasing and then decreasing, verifying that there are threshold characteristics and spatial heterogeneity. Overall, informal environmental regulation promotes the transfer of pollution-intensive industries and shows the informal regulation’s economic effect. The paper then puts forward the corresponding policy suggestions, including utilizing clean energy-saving technologies in the industrial sector, which is incredibly significant to realize the coordinated development of environmental protection and economy.
Highlights
“Sustainable cities and communities” is one of the 17 sustainable development goals (SDGs) proposed by the United Nations to make cities and human settlements safe, resilient, and sustainable
The first term estimation coefficient of environmental regulation is positive, and the second term estimation coefficient is negative, and both pass the significance level of 1%. This shows an inverted “U” type dynamic relationship between formal environmental regulation and industrial transfer, which is similar to the national regression result
From the estimation coefficient of explanatory variables, the estimation coefficient of informal environmental regulation is significantly negative, which indicates that informal environmental regulation promotes the transfer out of pollution-intensive industries
Summary
“Sustainable cities and communities” is one of the 17 sustainable development goals (SDGs) proposed by the United Nations to make cities and human settlements safe, resilient, and sustainable. The total cost of environmental regulation is the critical factor of pollutionintensive industrial transfer, including pollution control cost and transaction cost (Li et al, 2020). It is of great significance for the coordinated development of environmental protection and regional economic growth to study the impact of environmental regulation on the transfer of pollution-intensive industries. How environmental regulations affect the transfer of pollution-intensive industries in urban areas is the core issue of realizing balanced development among regions and reducing pollution transfer in China. How can the government use environmental regulation tools to promote pollution-intensive industries’ transfer and realize the regional economy and environment’s coordinated development? This paper’s main research contents include five parts: the first part is the literature review, the second part is mechanism analysis, the third part is the empirical analysis, the fourth part is threshold effect analysis, and the fifth part is conclusion and policy implications
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