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Can the transfer of polluting industries achieve a win–win situation for both the economy and the environment? Research based on the perspective of environmental regulation

Author

Listed:
  • Kedong Yin

    (Shandong University of Finance and Economics
    Shandong University of Finance and Economics)

  • Lu Liu

    (Shandong University of Finance and Economics)

  • Chong Huang

    (Shandong University of Finance and Economics
    Shandong University of Finance and Economics)

  • Yuqing Xiao

    (Tianjin University of Science and Technology)

Abstract

As China’s industrial structure is continuously evolving, the transfer of polluting industries between domestic regions has become increasingly evident, and the resulting economic and environmental contradictions have become more prominent. This study examines the impact of the transfer of polluting industries from developed regions to under-developed regions on the economy and the environment, and explores whether the economy and the environment can achieve a win–win situation owing to the transfer of polluting industries. This study uses panel data from 30 province-level regions in China as a sample to analyze the impact of polluting industries on the economy and the environment during the transfer process, and verifies it from the perspective of environmental regulation. The empirical results show that the transfer of polluting industries has an “N” relationship with the economy and the environment (promote-restrain-promote). From the perspective of environmental regulations, there is a “U” relationship between environmental regulations and the economy (restrain-promote), and an “inverted U” relationship with pollution emissions (promote-restrain), which also indirectly verifies the reason the transfer of polluting industries has an “N” relationship with the economy and the environment and ultimately achieves a win–win situation. Finally, we believe that strengthening environmental regulations can effectively reduce pollution emissions. Although it will cause certain economic losses in the short term, it will benefit the environment and the economy in the long run. At present, most provinces in China have not yet achieved the coordinated development of the environment and the economy. All regions should make reasonable environmental regulations according to their own conditions and strive to achieve a win–win situation for the environment and the economy.

Suggested Citation

  • Kedong Yin & Lu Liu & Chong Huang & Yuqing Xiao, 2023. "Can the transfer of polluting industries achieve a win–win situation for both the economy and the environment? Research based on the perspective of environmental regulation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8903-8928, August.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:8:d:10.1007_s10668-022-02384-6
    DOI: 10.1007/s10668-022-02384-6
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