Abstract
Boundary environmental pollution and pollution spillovers are important issues for improving the water quality of trans-boundary rivers. This paper explores the empirical effects of the evolution of the pollution reduction mandates on boundary pollution by studying the change of water pollution levels (as proxied by pH, BOD, COD and NH3-N) of key state monitoring stations from 2004 to 2014. The empirical findings support the existence of boundary pollution and indicate the association between environmental policy and boundary pollution levels using propensity score matching, although the relation is conditional on which water pollution measure is considered. The pollution levels of monitoring stations on provincial borders are significantly higher than those of interior monitoring stations. The pollution of tributaries is more serious than that of the main stream, which was quickly reversed after the pollution reduction mandates changed. The improvement of the water environment showed great differences with the change of policy when we compare the water quality of monitoring stations in the upper reaches of provincial borders with the water quality downstream of provincial borders. Our empirical analysis finds strong evidence of strategic polluting across provincial borders. Local officials may manipulate pollution within their jurisdictions, and the overall pollution reduction target will exacerbate border pollution, whereas water quality inspection can reduce marginal pollution. Finally, we further validate the net impact of the policies on boundary pollution using a difference in difference (DID) approach.
Highlights
Pollution spillovers of trans-boundary rivers are one of the most important research questions in environmental economics because the negative externalities of pollution are amplified by the flow of water
This paper examines the existence of boundary pollution as captured by the values of hydrogen ion concentration, dissolved oxygen (DO), chemical oxygen demand (COD) and ammoniacal nitrogen (NH3-N) using weekly water quality data from monitoring stations from 2004 to 2014
Using the Propensity score matching (PSM) and difference in difference (DID) identification strategy, this paper identifies the existence and dynamic change of boundary pollution with the water pollution policy regime shift in China, which provides strong evidence of strategic polluting by local officials
Summary
Pollution spillovers of trans-boundary rivers are one of the most important research questions in environmental economics because the negative externalities of pollution are amplified by the flow of water. He et al [9] studied the impact of boundary water pollution on people’s willingness to pay (WTP) and found that WTP is negatively affected by the water quality from the upstream. There is a branch of the existing literature whose findings are inconsistent with the above results Yang and He [12] concluded that polluting enterprises do not choose to locate near jurisdictional borders because local governments tend to agglomerate their effects to boost economic growth. This paper uses weekly data on water quality from monitoring stations to study boundary pollution and the impact of environmental policy on boundary pollution in China. The main objective of this paper is to examine the existence of boundary pollution in China and investigate the effects of the 2006 and 2011 policy changes.
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call