Agglomeration externalities and the non‐linear performance of environmental regulation: Evidence from China

Pang, Rui; Dan, Zheng; Shi, Minjun

doi:10.1111/grow.12518

Cited by 7 publications

(7 citation statements)

References 55 publications

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“…The transformation to a service-oriented and regulatory-oriented government, and the inclusion of ecological and environmental performance in the official assessment system, will strengthen the supervision of enterprises [11]. Simultaneously, enterprises settled in industrial clusters can bring economic benefits and make full use of centralized treatments of pollutants to achieve scale effects in pollution abatement and reduce pollution control costs [10,13]. Enterprises will also reduce nonproductive expenditures and focus on production and environmental governance [8].…”

Section: The Interplay Between Er and Lp: Relations Between Local Gov...mentioning

confidence: 99%

“…Due to the differences in research perspectives and scales, there are multiple nonunified quantitative methods for measuring ER, including the comprehensive index [23], the substitution method [10], and the natural difference method [39]. Considering that multidimensionality and comparability are two relatively important aspects of the measurement of ER, we constructed an ER intensity index based on Keller's industrial composition pollution abatement adjusted cost measurement approach [43].…”

Section: Measurement Of Er Intensitymentioning

confidence: 99%

“…Some scholars have tackled the environmental and regulatory problems from economic perspectives, such as the industrial scale, the industrial structure, technological innovation, agglomeration externalities, and globalization [9,10]. However, such economic investigations often de-emphasize the impact of China's transitional background and government-led development model on the ER efficiency.…”

Section: Introductionmentioning

confidence: 99%

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Interplay of Environmental Regulation and Local Protectionism in China

Tian

Miao

Chen

et al. 2022

IJERPH

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Environmental regulation (ER) and local protectionism (LP) are important policy tools for Chinese local governments to improve the environment and promote growth, respectively, but we know little about their interplay in dealing with pollution-intensive industries and enterprises. Using spatial correlation analysis and spatial panel simultaneous equations models, we investigated the spatial characteristics and interactions of the ER and LP in China’s 285 prefectural cities. We found that the high-ER-intensity areas were spreading from the eastern to the central and western regions, and the patterns of LP transited from high in the north and low in the south to high in the west and low in the east. There was a negative correlation spatially between ER and LP. LP could inhibit the increase in ER intensity, while the continuously increasing ER intensity could restrict LP through the competitive behavior from the “race to the bottom” to the “race to the top” among local governments. The effect of ER restricting LP was significant from 2008 to 2013 and prominent in the east, which was dominated by “race to the top” competition, while LP had a greater inhibitory effect on ER in the central and western regions, which preferred to obtain tax revenues from pollution-intensive industries. The results imply that removing the roots of local protectionism, improving the environmental governance system, and formulating differentiated regional environmental regulatory measures will help local governments balance economic growth and environmental protection.

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Section: The Interplay Between Er and Lp: Relations Between Local Gov...mentioning

confidence: 99%

Section: Measurement Of Er Intensitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Interplay of Environmental Regulation and Local Protectionism in China

Tian

Miao

Chen

et al. 2022

IJERPH

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“…A few studies have evaluated the interaction effects between agglomeration and environmental regulations (e.g. Zeng and Zhao 2009;Pang et al 2021) but these attempts ignore the joint determination of tax policy and environmental standards central to the work of Oates and Schwab (1988). In a more recent paper, Kunce (2022a) incorporates multiplicative external economies into the framework of Oates and Schwab (1988) finding that when external economies to scale are sufficiently strong, local policy influences on capital flow are mitigated providing jurisdictions' incentives to strengthen environmental standards beyond the social optimum.…”

Section: Introductionmentioning

confidence: 99%

The Import of Capital Taxes and Environmental Standards Compared To Agglomeration on Capital Flow

2022

BJES

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The effect of competition for mobile capital on local (jurisdictional) policy making is critical to the fiscal-environmental federalism literature. This existing body of literature, however, is deficient in examinations of how influential local policy levers, environmental standards and taxation, compare with fundamental capital location determinants like agglomeration forces. The purpose of this investigation is to broaden the agglomeration augmented interjurisdictional competition model to effectively compare local policy and agglomeration influences on capital flow. When jurisdictions do not have access to forms of taxation that allow for the efficiency of public goods provision, agglomeration forces notably impact fiscal policy weight. Herein, the magnitude of agglomeration directly effects the determination of the capital tax rate which in turn influences the provision of public goods. Subsequent inefficient public goods provision will distort the local choice of environmental standards. The capital tax must be complimented by 'benefit' taxation to finance efficient public expenditure. Interestingly, when public goods are provided efficiently, the capital tax doubles as a Pigovian remedy and a subsidy instrument depending, largely, on the strength of agglomeration forces.

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“…核压力可能存在暂时性的 "应激反应" [11,12] ，企业会通过关停、减产等方式缩小生产规模，降低污染排放，以快速达成环境考核目标。而中央开展的环保约谈政策以及政府环境审计均会刺激企业增加生产过程的环保清洁投入，通过提高污染治理水平提升企业环保绩效，以获得持久性的 "长效反应" [13,14] 的提升 [15,16] 。进一步，公众环保诉求与政府环境规制的协同作用显著增强环境监管程度，提升企业的环境治理动机 [1,17] ，抑制污染排放水平，增强环境责任意识 [18] 。…”

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