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Does environmental decentralization improve industrial ecology? Evidence from China's Yangtze River Economic Belt

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  • Zhao, Feifei
  • Hu, Zheng
  • Yi, Ping
  • Zhao, Xu

Abstract

The rational division of environmental management powers between governments is the institutional basis for promoting the transformation of industrial ecology (IE). Based on panel data of 105 prefecture-level cities in the Yangtze River Economic Belt (YREB) of China from 2006 to 2020, this study analyzes the spatial and temporal evolution characteristics of IE and environmental decentralization (ED) in the YREB by constructing evaluation index systems. The spatial econometric model is used to explore the effects of ED on IE under economic growth pressure (EGP) and officials’ tenure (LT). The results indicate that regional differences in IE in the YREB exhibit a fluctuating downward trend and that the imbalance between regions is the leading cause of overall differences. Furthermore, IE presents a significant spatial positive correlation. ED has a restraining effect on IE and is regulated by EGP and LT. Moderate EGP can mitigate the negative effects of ED on IE, while LT intensifies the negative effects of ED on IE. Heterogeneity exists in the relationship between ED and IE in regional locations and pollution control pressure areas. These results are significant for developing a modern industrial system, formulating differentiated environmental protection strategies, and improving the government performance appraisal system.

Suggested Citation

  • Zhao, Feifei & Hu, Zheng & Yi, Ping & Zhao, Xu, 2024. "Does environmental decentralization improve industrial ecology? Evidence from China's Yangtze River Economic Belt," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1250-1270.
    • Handle: RePEc:eee:ecanpo:v:82:y:2024:i:c:p:1250-1270
    DOI: 10.1016/j.eap.2024.05.013
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