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A study of the impact of urban business credit environment on environmental pollution

Author

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  • Jing Wu
  • Qing Guo

Abstract

Environmental pollution has become a global concern, so it is critical to find out the elements that influence it. Is the urban business credit environment influencing urban environmental conditions? The study takes the entropy method for calculating the environmental pollution index of 276 prefecture-level cities across China from 2010 to 2021, the CE1 index to describe the urban business credit environment, and a spatial Durbin model to empirically analyze the mechanism and transmission path of the urban business credit environment on environmental pollution. The findings demonstrate that: (1) there is an important positive spatial association between China’s urban pollution index and urban business credit index, and that the level of spatial clustering of the two is increasing over time. (2) the urban business credit environment and environmental pollution have an inverted "U" shape relationship and a significant spatial spillover effect, which means that once a certain threshold is reached, improving the urban business credit environment reduces environmental pollution in local and neighboring areas. (3) The influence of the urban business credit environment on environmental deterioration varies by region. The extra heterogeneity test results for the different regions show that the relationship between business credit level and environmental pollution is consistent with the overall situation in the eastern and western regions, the opposite effect was observed in the central region. (4) Changes in the urban business credit environment have an indirect impact on environmental conditions due to the amount of regional financial development and technological innovation potential. To reduce pollution in the region, prefectural-level cities must strengthen the construction of urban business credit systems, strive to create a favorable business credit environment, strengthen the spatial spillover effect, and guide the resource elements of business credit planning to flow into the central and western parts of China reasonably. The study’s findings have significant practical implications for modifying the government’s development strategy and improving the urban environment.

Suggested Citation

  • Jing Wu & Qing Guo, 2025. "A study of the impact of urban business credit environment on environmental pollution," PLOS ONE, Public Library of Science, vol. 20(1), pages 1-26, January.
    • Handle: RePEc:plo:pone00:0310636
    DOI: 10.1371/journal.pone.0310636
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    References listed on IDEAS

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    1. Xiangshu Dong & Yongjiao Du & Xiang Xiao, 2025. "How does China’s green factory policy affect substantive green innovation?," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-31, June.

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