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Transboundary Pollution in China: A Study of Polluting Firms' Location Choices in Hebei Province

Author

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  • Chloé Duvivier

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Hang Xiong

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

Transboundary pollution is a particularly serious problem as it leads people located at regional borders to disproportionately suffer from pollution. In China, where the environmental policy is decentralized and where environmental conflicts between provinces have occurred several times, transboundary pollution is likely to exist. However, until now, nearly all the studies focused on developed countries. In this paper, we study whether transboundary pollution problems exist in China. To do so, we estimate whether, within Hebei province, polluting firms are more likely to set up in border counties than in interior ones. To ensure the robustness of our results, several measures of the variable of interest are constructed from Geographic Information System (GIS) data. The estimations of a count-data model allow us to conclude that border counties are more attractive destinations for polluting firms than counties located within the province. Moreover, it appears that this effect has strengthened over time.

Suggested Citation

  • Chloé Duvivier & Hang Xiong, 2012. "Transboundary Pollution in China: A Study of Polluting Firms' Location Choices in Hebei Province," Working Papers halshs-00598592, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00598592
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00598592v2
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    Cited by:

    1. Liu, Ying & Huang, Jikun & Zikhali, Precious, 2016. "The bittersweet fruits of industrialization in rural China: The cost of environment and the benefit from off-farm employment," China Economic Review, Elsevier, vol. 38(C), pages 1-10.
    2. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    3. Jota Ishikawa & Toshihiro Okubo, 2017. "Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 637-660, August.
    4. repec:spr:anresc:v:58:y:2017:i:2:d:10.1007_s00168-016-0783-4 is not listed on IDEAS
    5. Stefania Lovo, 2014. "The effect of environmental decentralization on polluting industries in India," GRI Working Papers 143, Grantham Research Institute on Climate Change and the Environment.
    6. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(03), pages 333-366, June.
    7. Wu, Haoyi & Guo, Huanxiu & Zhang, Bing & Bu, Maoliang, 2017. "Westward movement of new polluting firms in China: Pollution reduction mandates and location choice," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 119-138.

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    Keywords

    Transboundary pollution; firm location choice; environmental regulations; China;

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