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Optimal governance radius of environmental information disclosure policy: Evidence from China

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  • Wan, Kai
  • Yu, Xiaolin

Abstract

Urban pollution governance requires the joint participation of government, society, and enterprises, with the environmental information disclosure policy serving as a novel tool to promote multi-stakeholder engagement. This study aims to delve into the impact of the environmental information disclosure policy on regional environmental quality by using data from Chinese cities. Through analysis, the study gets the following conclusions. Firstly, the environmental information disclosure policy not only effectively reduces urban environmental pollution but also exhibits an apparent spatial spillover effect. The impact of this policy on air pollution in neighboring cities shows an inverted U-shaped pattern of first rising and then falling, with the optimal radius of this external effect estimated at 250 km. Secondly, the results of the mechanism test indicate that government regulatory efforts and clean industry alternatives are essential channels for curbing urban environmental pollution. Lastly, the heterogeneity test shows that the inhibitory effect of the environmental information disclosure policy on environmental pollution is more pronounced in civilized cities, cities in the “two control zones”, sulfur dioxide control zones, and cities with high Pollution Information Transparency Index scores.

Suggested Citation

  • Wan, Kai & Yu, Xiaolin, 2024. "Optimal governance radius of environmental information disclosure policy: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 618-630.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:618-630
    DOI: 10.1016/j.eap.2024.07.010
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    More about this item

    Keywords

    The environmental information disclosure policy; Environmental pollution; Optimal radius; Clean industry alternatives; Urban heterogeneity;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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