Nonlinear effects of socio-economic factors on urban haze in China: Evidence from spatial econometric smooth transition autoregressive regression approach

Abstract

In recent years, China has achieved numerous economic miracles but it has also been plagued by severe air pollution. The frequent hazy weather has severely restricted China's sustainable development. To investigate the nonlinear threshold effect of socio-economic factors on urban haze in China, this study constructs a spatial econometric Smooth Transition Autoregressive Regression (STAR) model based on the STIRPAT theory by using the remote sensing inversion PM2.5 data of 223 prefecture-level and above cities in China mainland during 2004–2016. In this study, the ARAR-STAR model is estimated by quasi-maximum likelihood estimation, and the accuracy of parameter estimation is verified by Monte Carlo simulation, which proves that the ARAR-STAR model constructed in this study is robust. It is concluded that: there is a complex spatial nonlinear relationship between socio-economic factors such as economic development level, population density, advanced industrial structure, energy consumption, opening-up, and haze pollution. The effect of socio-economic factors on haze emission reduction under the spatial influence has complex heterogeneity with the smooth transition between high and low regimes with economic development. The ARAR-STAR model constructed in this paper, which has both individual fixed effects and time fixed effects, expands the form of existing spatial panel nonlinear models and enriches and implements the application of spatial panel smooth transfer threshold models in the environmental field. Not only can it provide policy recommendations for China to achieve "coordinated efficiency in pollution reduction and carbon reduction" as soon as possible, but it also contributes to China's plan to address global climate change and promote global sustainable development.