The Role of Industrial Structure Upgrading in Moderating the Impact of Environmental Regulation on Air Pollution: Evidence from China

Abstract

Air pollution is an important factor affecting human health and daily life. The Chinese government is making vigorous efforts to control air pollution. The upgrading of the industrial structure is a problem-solving tool in the environment and economic growth cases. This paper aims to explore the relationships among environmental regulation, the upgrading of the industrial structure and air pollution. The PVAR (Panel Vector Auto Regression) model and moderating effect model are used to conduct empirical analysis based on panel data of 30 provinces in China from 2004 to 2020. The analysis of the results provides the following findings. Firstly, environmental regulations can significantly reduce emissions, but the deterioration of air quality does not have a significant impact on the improvement of environmental regulations. Secondly, industrial structure upgrading can reduce air pollution, but the worsening of the air quality will hinder the upgrading of industrial structures. Thirdly, environmental regulation can promote industrial structure upgrading. Lastly, industrial structure upgrading is a moderating variable and can positively moderate the impact of environmental regulations on air pollution.