Abstract
Environmental regulation and industrial restructuring are highly relevant to environmental governance and green development in China. A dynamic game model was used to analyse the mechanisms behind the role of environmental regulation in promoting the restructuring of energy-intensive industries. A dynamic spatial Durbin model was constructed to empirically test the dynamic spatial effects and regional heterogeneity of the transfer of high energy-consuming industries on environmental pollution under environmental regulation with panel data. Thus, the study found that the environmental emission effect of a single high energy-consuming industry transfer and environmental regulation is significant, while the combined effect of both exhibits a negative environmental effect. Environmental regulation and the concentration of high energy-consuming industries have a positive spatial spillover effect on environmental pollution, and the long-term effect is greater than the short-term effect; high energy-consuming industries are gradually transferred from the more developed regions in eastern and central China to the less developed regions in western China.
Highlights
IntroductionOne of the typical means toward this end is to attract capital inflows from high energy-consuming industries through competing to lower environmental standards
It used a dynamic game model to analyse the role of different environmental regulation choices on the market concentration and the regional transfer of energy-intensive industries, respectively
Moran’s I of spatial autocorrelation and constructed a dynamic spatial Durbin model to empirically analyse the impact of environmental regulations and the transfer of high energyconsuming industries on environmental pollution
Summary
One of the typical means toward this end is to attract capital inflows from high energy-consuming industries through competing to lower environmental standards. It is generally believed that high energy-consuming industries have the dual nature of both “large scale capital” and “heavy environmental pollution”; that is, while contributing to economic growth, they harm energy consumption and environmental quality. The desire of local governments to promote economic development through more industrial investment has led to a situation of “bottom-up competition” in the development of environmental regulation standards and the implementation of environmental regulation measures by local governments. To achieve better results in local GDP championships, local governments take the initiative to lower environmental regulation standards and attract more business investment. Local authorities are concerned about the pollution caused by lower standards. Environmental events have led to increasing atmospheric pollution, as evidenced by rising average global temperatures, frequent natural disasters and haze, which have resulted in a range of social
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