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Effects of environmental regulation on air pollution control in China: a spatial Durbin econometric analysis

Author

Listed:
  • Xueping Wu

    (Fuzhou University
    Nanyang Technological University)

  • Ming Gao

    (Fuzhou University)

  • Shihong Guo

    (Tsinghua University)

  • Wei Li

    (Fuzhou University
    Nanyang Technological University)

Abstract

Based on provincial panel date of China for the period 2001–2014, this study empirically adopts the slacks-based measure of directional distance function model and spatial Durbin model to explore the impacts of environmental regulation and its spatial spillover effect on air pollution control. The results show that the increase of environmental regulation stringency will help to improve air pollution control efficiency or reduce air pollutant emissions. In terms of spatial effect, evidence has been found to support environmental regulation has significantly spatial spillover effects. Specifically, the increase of environmental regulation in other provinces will decrease local air pollution control efficiency or increase local air pollutant emissions, which implies that there is strategic interaction of environmental regulation among local governments. Moreover, the results of the time interval test indicate that the effects of environmental regulation on air pollution control have improved in recent years, and with the increase of environmental regulation stringency, its spatial spillover effects have increased.

Suggested Citation

  • Xueping Wu & Ming Gao & Shihong Guo & Wei Li, 2019. "Effects of environmental regulation on air pollution control in China: a spatial Durbin econometric analysis," Journal of Regulatory Economics, Springer, vol. 55(3), pages 307-333, June.
    • Handle: RePEc:kap:regeco:v:55:y:2019:i:3:d:10.1007_s11149-019-09384-x
    DOI: 10.1007/s11149-019-09384-x
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    More about this item

    Keywords

    Environmental regulation; Air pollution control; Strategic interaction; Spatial Durbin model; Local government;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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