Research on the strategic interaction of China's regional air pollution regulation: spatial interpretation of "incomplete implementation" of regulatory policies

Fiscal decentralization, leader localization, and reduction of pollution and carbon emissions -empirical evidence from China's fiscal "province-managing-county" reform

The fiscal system plays an important role in the government's environmental governance efforts. There is currently no consensus on how fiscal structure adjustments impact pollution and carbon reduction. This paper uses China's fiscal "province-managing-county" reform (FPMCR) implemented in 2004 as a quasi-natural experiment, utilizing panel data from 1670 counties in China from 2000 to 2020 to investigate the impact of fiscal decentralization on reduction pollution and carbon emissions (RPCE), as well as its underlying mechanisms. The results show that (1) from 2000 to 2020, China's RPCE shows an overall trend of fluctuating increase, with its value turning positive after 2013. China's RPCE exhibits a spatial pattern characterized by "lower in the north, higher in the south; higher in the east, lower in the west". (2) After implementing FPMCR, the RPCE levels in reformed counties decreased by -1.44%, showing that reformed county-level governments prioritize economic development over environmental protection. (3) The mechanism analysis found that after implementing FPMCR, reformed counties experienced a 9.16% increase in nighttime light intensity (NLI), and a 3.99% and 4.34% increase in the number of large-scale industrial enterprises (NLIE) and industrial agglomeration (IA), respectively. This suggests that FPMCR leads to radical urbanization and rapid industrialization in counties, which is detrimental to the improvement of RPCE levels. (4) The spatial heterogeneity analysis found that FPMCR's impact coefficient on RPCE levels in the eastern regions is -1.96%, while in the western regions it is -1.16%. This indicates that reformed counties in the eastern regions are more likely to invest expanded fiscal resources in economic development projects, leading to a decrease in RPCE levels. (5) The temporal heterogeneity analysis found that after the promulgation of the "Three-Year Action Plan to Win the Blue Sky Defense Battle" in 2018, the adverse impact of FPMCR on RPCE is completely reversed, leading to a 1.76% increase in RPCE levels. (6) Further analysis reveals that localizing leaders can slow down the promotion of county-level urbanization and industrialization by the FPMCR, benefiting the improvement of RPCE levels. In other words, "the outsider monk will not recite scriptures as well as a local one". This study has clarified the causal relationship and underlying mechanisms between fiscal decentralization and environmental governance, providing reliable theoretical support for optimizing grassroots fiscal systems and reducing environmental pollution in other transitional economies. It enriches the field of environmental economics related to fiscal decentralization.

A tripartite game analysis of industrial structure upgrading and green development of regional economy: A case study of Shanxi Province, China

In the contemporary context, both the upgrading of the industrial structure and the implementation of environmentally sustainable practices within the regional economy have emerged as central avenues for achieving quality development. This study examines the strategic behavior of local governments, capital, and people through the construction of a tripartite evolutionary game model. Subsequently, six different evolutionary stable strategy (ESS) are subjected to a comprehensive analysis. Finally, the parameters influencing the strategic decisions of each party are meticulously examined through simulation. The results of this study can be summarized as follows: First, it is shown that under appropriate conditions, all three entities support the scenario of stable development prospects associated with industrial structure upgrading (1, 1, 1). Second, the strategic choices made by capital and people depend on several factors, including existing profits, future benefits, and the costs associated with transformation. At the same time, local governments show a propensity to adopt incentive strategies. Ultimately, the research underscores the pronounced impact of future benefits, transformation costs, and the probability of success in industrial upgrading on all stakeholders, shaping their evolutionary trajectories and results. In particular, the probability of successful industrial structure upgrading exerts the greatest influence on evolutionary trajectories, while the possibility of government imposing carbon taxes and initial willingness primarily determine the evolutionary trajectory. This paper attempts to provide a new perspective on industrial structure upgrading and green development of the regional economy by combining evolutionary game theory and scenario analysis methods to promote the process of industrial structure upgrading and sustainable development.

Strategic interaction in environmental regulation and sulfur dioxide emissions: Evidence from China

Environmental regulation is the central government's main instrument for pollution control, but its actual implementation effect directly depends on the level of enforcement by local governments. Using panel data of 30 regions in Mainland China from 2004 to 2020 and a spatial Durbin model, we investigated the effects of strategic interaction among local governments in environmental regulation on sulfur dioxide (SO₂) emissions. We found a "race to the top" behavior in the enforcement of environmental regulation among China's local governments. The enhancement of environmental regulation in a region or in its adjacent regions can significantly reduce SO₂ emissions in that region, indicating that joint environmental governance can achieve considerable pollution control effects. Furthermore, influence mechanism analysis shows that the emission reduction effect of environmental regulation is primarily achieved through green innovation and finance. In addition, we found that environmental regulation has a significant negative impact on SO₂ emissions in low-energy-consuming regions, but not in high-energy-consuming regions. Our findings indicate that China should continue to implement and deepen the green performance appraisal system for local governments and improve the efficiency of environmental regulations in high-energy-consuming regions.

The impact of municipal solid waste sorting policy on air pollution: Evidence from Shanghai, China

Municipal solid waste (MSW) sorting not only reduces the total quantity of domestic waste but also has positive effects on urban air quality. In this study, using a careful identification strategy and air quality data at the monitoring station level in Shanghai, we estimate the causal effect of the MSW sorting policy on urban air quality. The results show that after the MSW sorting policy was implemented, the air quality index (AQI), nitrogen dioxide (NO2) and carbon monoxide (CO) decreased significantly by 2.71%, 2.07% and 3.62%, respectively. We also find a positive spillover effect from the Shanghai MSW sorting policy on the air quality of adjacent cities. The implementation of this policy has triggered changes in residents' behaviors. However, the government needs further efforts to maintain the sustainability of MSW sorting policies.

Impact of environmental regulation on green total factor productivity: a new perspective of green technological innovation

Green total factor productivity (GTFP) is an essential indicator to measure economic and environmental efficiency. Moreover, formulating a reasonable environmental regulation system and promoting green technological innovation is a systematic way to improve GTFP. However, previous related studies lack to investigate the impact of environmental regulation on GTFP from the perspective of green technological innovation. For this purpose, this paper aims to examine the specific impact of environmental regulation on GTFP based on the perspective of green technology innovation, so as to provide some policy insights for the formulation of more effective implementation of environmental regulation, improve green technology innovation level, and achieve a win-win situation for both economic growth and environmental protection. Furthermore, epsilon-based measure (EBM), which includes both radial and non-radial distance functions, is used to measure the GTFP. The spatial autoregressive method is also employed to quantify the impact of environmental regulation on GTFP from the perspective of green technological innovation using panel data of 269 prefecture-level cities in China from 2004 to 2018. The main findings indicate that there is a significant spatial autocorrelation between environmental regulation and GTFP. Environmental regulation has a significant positive effect on GTFP. Environmental regulation in the local regions also significantly contributes to GTFP in neighboring regions. Besides, environmental regulation indirectly promotes GTFP by enhancing green technological innovation level. Regional heterogeneity results show that environmental regulation can not only directly promote GTFP but also indirectly significantly promote GTFP through green technological innovation in the eastern and central regions, but insignificant in the western region. Based on the above findings, we conclude that policymakers should not only develop differentiated environmental regulation standards and steadily improving the intensity and rationality of environmental regulation but also add green innovation funds supply, enhance green innovation factor allocation efficiency, and strengthen R&D talents, funds, and policies to green technology innovation, so as to drive GTFP improvement.

Does government information transparency contribute to pollution abatement? Evidence from 264 Chinese cities

Government information transparency is taken as a prominent instrument of environmental regulation in Chinese cities, especially in the current digital age. However, polluters' strategic emission and production behaviors across cities, confronted with changing information disclosure level, might make the policy's effect unexpected in practice. While many existing studies have explored the impact of institutions on pollution, government information disclosure only attracted little attention from empirical studies. Using the method framework of the spatial Durbin model, this study empirically investigates the impact of government information transparency on sulfur dioxide emissions with samples of 264 Chinese cities from 2005 to 2012. We find that a city's government information transparency negatively relates to its local emission level of sulfur dioxide. Moreover, a city's sulfur dioxide emissions positively relate to its neighboring cities' government information transparency levels. The further calculations of marginal effects show that the average of such a direct and local impact of government information transparency outweighs the average indirect effect a city receives from its neighboring cities, making government information transparency benefits to pollution abatement in total.

Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis

The development of a difference-in-differences estimator is a new move in patent policy evaluation research. However, such an estimator neglects the possibility that academic patent activities follow a spatial autoregressive process with respect to the dependent variable. The objective of this study was to propose a spatial difference-in-differences estimator accounting for possible spatial spillover effects. In this study, an empirical analysis of a sample of 31 Chinese provinces from 2010 to 2019 indicates that an incentive patent policy has a positive impact on the output and commercialization of academic patents, with positive effects also spilling over into neighboring provinces. This study further found that incentive patent policies play a placebo role in academic patent activities. Provincial patent policies are merely a proxy for other variables that characterize the systemic differences between provinces that implement patent policies and those that do not. Therefore, the promotion of academic patent activities cannot be attributed to policy incentives.

Does the joint prevention and control regulation improve the air quality? A quasi-experiment in the Beijing economic belt during the COVID-19 pandemic

This study aims to clarify the correlation between air pollution of cities in Beijing Economic Belt from a time-varying perspective and estimate effects of joint prevention and control regulation of air pollution. The COVID-19 pandemic provides a unique opportunity. Based on daily data of air quality, we used TVP-VAR model and utilize the pandemic as a quasi-experiment to assess the policies. The results show air pollution in surrounding cities does influence Beijing's air quality, but the relationship has been weakening year by year, mainly due to industrial adjustment which have achieved progress on alleviating the path of air pollution. Therefore, it is necessary to implement joint regulation in areas with serious pollution. Specifically, the relationship between the air quality of Beijing and Zhangjiakou, Chengde, Tianjin decreased as the pandemic became worse. In contrast, there was no significant decline in Langfang and Baoding. So unlike Baoding and Langfang, industrial production increased relationships between air quality of Beijing and the other three cities, which highlights the validity of restrictions. However, restrictions implemented on Baoding and Langfang affect economic development but have little effect on Beijing's air governance. Therefore, joint regulation contributes to realizing sustainable cities, but more targeted policies should be formulated.

A fuzzy rule-based multi-criterion approach for a cooperative green supplier selection problem

Multi-criterion decision-making models are widely used in supplier selection problems. This study contributes to a green supplier selection problem considering the green manufacturing, green transportation, and green procurement. This study contributes to reverse logistics, eco-design, reusing, recycling, and remanufacturing with their high impact on the industries. In addition to the logistics costs and transportation costs, the carbon emissions are considered. With regard to the game theory, this paper uses a cooperative green supplier selection model. If transportation requirements of two or more companies are combined, it will help manufacturers to have less [Formula: see text] emissions with lower cost. After creating the optimization model to consider the uncertainty, this cooperative game theory model is established in a fuzzy environment. In this regard, a fuzzy rule-based (FRB) system is deployed and the set of fuzzy IF-THEN rules is considered. The proposed FRB model is contributed for the first time in the area of green supplier selection problem. Finally, some sensitivity analyses are conducted in a numerical example to evaluate the proposed model. With regard to the findings, although the cost of CO2 emission of horizontal cooperation is increased, the cost saving of companies is increased. It means our total cost is optimal in a logistic network using the cooperative game theory. The results also indicate that horizontal cooperation in logistic network causes less cost and benefits for each company.

Coupling relationship between construction land expansion and PM2.5 in China

Urban air pollution with PM2.5 as the main pollutant has become increasingly prominent in China since 2010. Scholars have conducted many studies on how urbanization affects PM2.5, but few concerns about the relationship between construction land (CL) expansion and PM2.5 at different scales from the perspective of expansion rate. Therefore, this study takes CL and PM2.5 data in China to describe the spatiotemporal progress of atmospheric environmental pollution and then adopts the overall and spatial coupling models to quantitatively reveal the dynamic relationship between them. The results indicate that the growth rate of PM2.5-polluted area in China was found to increase rapidly for 2000-2010 time period, followed by a continuous decline afterward. The annual average growth rates of CL area and PM2.5-polluted area within 15 years were 4.43% and 2.46%, respectively. Moreover, the barycenter distance between PM2.5 concentration and CL decreased gradually, and the two barycenters approached closer. Also, the spatial coupling coordination of CL and PM2.5 enhanced in Central, West, and East China but weakened in Northeast. Cities with a "very strong" coupling type are mainly located in the "Chongqing-Beijing" belt and the lower-middle reaches of the Yangtze River. Finally, the spatial coupling model results show that a low PM2.5 concentration is closely related to CL expansion. This study will provide a basis for cross-regional joint air pollution control and the management of heavily polluted areas in China.