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The impact of environmental regulation on Chinese spatial development
Author(s) -
Naso Pedro,
Huang Yi,
Swanson Tim
Publication year - 2020
Publication title -
economics of transition and institutional change
Language(s) - English
Resource type - Journals
eISSN - 2577-6983
pISSN - 2577-6975
DOI - 10.1111/ecot.12234
Subject(s) - productivity , china , environmental regulation , environmental pollution , natural resource economics , business , economic geography , industry of china , distribution (mathematics) , geography , economic growth , environmental protection , economics , mathematical analysis , mathematics , archaeology
We examine the relationship between environmental regulation and spatial development in China. Exploiting changes in national pollution standards for three industries, ammonia, paper and cement, we measure the impact of environmental regulation on industry productivity. Our results suggest that national pollution standards do not affect industry productivity, but they reallocate productivity spatially. We show that regulated industries located in developing cities increase their productivity compared to similar industries in other cities. This means that environmental regulation affects the spatial distribution of technology in China and might influence long‐term spatial development by reducing geographical disparities.