Effects of environmental regulation on CO2 emissions: An empirical analysis of 282 cities in China
2022
Wang, Huiping | Zhang, Runjie
This paper takes 282 cities in China from 2003 to 2016 as research samples, uses the system-generalised method of moments (GMM) and dynamic panel model to analyse the direct and indirect effects of environmental regulation on CO₂ emissions, and subdivides the research sample to analyse the impact of urban heterogeneity on the emission-reduction effect of environmental regulation. The results show that the direct impact of environmental regulation on CO₂ emissions presents an inverted U-shaped relationship. At present, environmental regulations effectively restrain CO₂ emissions in Chinese cities. Overall, environmental regulation can effectively restrain CO₂ emissions by forcing industrial structure upgrades and technological innovation. However, under the constraints of environmental regulation, foreign direct investment (FDI) shows a pollution–haven effect. From the subsample perspective, the impact of urban heterogeneity on the emission reduction effect of environmental regulation is quite different. This study helps policy-makers better understand the impact of environmental regulation on CO₂ emissions and formulate effective policies to achieve emission reductions.
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