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The Dually Negative Effect of Industrial Polluting Enterprises on China’s Air Pollution: A Provincial Panel Data Analysis Based on Environmental Regulation Theory

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  • Shoujun Lyu

    (School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200030, China
    China Institute for Urban Governance, Shanghai Jiao Tong University, Shanghai 200030, China
    Institute of Healthy Yangtze River Delta, Shanghai Jiao Tong University, Shanghai 200030, China
    These authors contributed equally to this work.)

  • Xingchi Shen

    (School of Public Policy, University of Maryland, College Park, MD 20742, USA
    These authors contributed equally to this work.)

  • Yujie Bi

    (School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200030, China)

Abstract

Although the Chinese government has promulgated a series of policies to mitigate air pollution, the air quality in a number of Chinese cities still has the potential to be improved. As the major source of air pollution, enterprises in the industrial and energy sectors are the most difficult to regulate in terms of polluting emissions. This paper aims to investigate what factors influence the intensity of environmental regulations on polluting enterprises based on environmental regulation theory and an empirical test. Firstly, this article builds a theoretic model of optimal regulation supply for local governments in order to examine the relationship between factors influencing the intensity of environmental regulation. Secondly, we use provincial panel data from 2008 to 2015 to test the theoretical hypothesis and use the generalized method of moments (GMM), the two-stage least squares (2SLS) method to address the endogeneity issue. The main finding of the study is that, in regions with a high concentration of polluting enterprises, not only is there more air pollution than in other regions, but the local governments might show partiality towards the polluting enterprises, which could impede the implementation of environmental regulation.

Suggested Citation

  • Shoujun Lyu & Xingchi Shen & Yujie Bi, 2020. "The Dually Negative Effect of Industrial Polluting Enterprises on China’s Air Pollution: A Provincial Panel Data Analysis Based on Environmental Regulation Theory," IJERPH, MDPI, vol. 17(21), pages 1-16, October.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:21:p:7814-:d:434628
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    Cited by:

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    2. Gedi Ji & Qisheng Wang & Qing Chang & Yu Fang & Jianglin Bi & Ming Chen, 2024. "Evolutionary Game Analysis of Government Regulation on Green Innovation Behavior Decision-Making of Energy Enterprises," Sustainability, MDPI, vol. 16(17), pages 1-20, August.

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