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Climate change risk and environmental governance on economic development: evidence from China

Author

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  • Zhanyong Zou
  • Zigui Zeng
  • Yikang Tang
  • Shulin Xu

Abstract

This research investigates whether environmental governance has a moderating effect on climate change risks and explores the regional spillover effect of climate change risks and environmental governance on economic development. Utilising panel data from 30 Chinese provinces between 2005 and 2019, the research employs a Spatial Durbin Model to investigate the proposed hypotheses. The findings illustrate that China’s overall economic development is significantly harmed by the threat of climate change. Environmental governance can positively influence economic development and effectively mitigate the adverse effects of climate change risks on the economy. Environmental governance is positively correlated with economic development and negatively associated with the effects of climate change risks. Additionally, further examination revealed that the impact of climate change risks and environmental governance on economic development is heterogeneous. Therefore, to respond to climate change risks and mitigate the inhibitory effect of climate change risks on the economy, it is necessary to establish and enhance the policy system to respond to climate change risks, formulate relevant emission reduction policies to guide and encourage enterprises and individuals to reduce carbon emissions, strengthen policy guidance, and promote clean energy and sustainable development technologies, as well as environmental and climate governance based on local conditions.

Suggested Citation

  • Zhanyong Zou & Zigui Zeng & Yikang Tang & Shulin Xu, 2025. "Climate change risk and environmental governance on economic development: evidence from China," Post-Communist Economies, Taylor & Francis Journals, vol. 37(7), pages 1039-1067, October.
    • Handle: RePEc:taf:pocoec:v:37:y:2025:i:7:p:1039-1067
    DOI: 10.1080/14631377.2025.2548062
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