How does the opening of China's high-speed rail affect the spatial mismatch of haze pollution and economic growth?

Abstract

A better reconciliation of haze pollution and economic growth has become the social consensus in China. The development of China's economy and air quality will be significantly impacted by its efforts to create high-speed rail (HSR). Based on panel data from 265 prefecture-level cities in China from 2003 to 2019, this paper investigates how the opening of HSR affects the spatial mismatch of haze pollution and economic growth by using the spatial mismatch index model, multi-period difference-in-differences (DID) model, and intermediary effect model. We find that the spatial mismatch in China has an overall decreasing trend. And its spatial agglomeration is dominated by low levels. Further empirical analysis shows that HSR opening can effectively restrain the spatial mismatch. Even after some robustness tests and endogenous treatment, the conclusion is still valid. In addition, population density, FDI, and industrial structure are also explicit factors affecting the spatial mismatch. Second, there is significant heterogeneity in the impact. This is reflected in the fact that HSR opening can suppress the spatial mismatch of service-oriented cities and the eastern region, while other cities and regions have no noticeable effect. Third, spatial transfer of haze pollution (STHP) and balanced development of economic growth (BEG) are two important conduction paths for the opening of HSR to affect the spatial mismatch. Specifically, HSR opening can constrain the spatial mismatch by inhibiting STHP and BEG. Based on the above findings, recommendations related to promoting a better harmony between haze pollution and economic growth are proposed.