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Understanding the haze pollution effects of China's development zone program

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  • Zhao, Chuanmin
  • Xie, Rui
  • Ma, Chunbo
  • Han, Feng

Abstract

Hundreds of billions of dollars have been invested to construct development zones (DZs) in China with the intent of fostering economic growth. Previous studies show that DZs benefit the local economy, but little attention has been paid to the environmental impacts. Based on statistical data and satellite measurements during 2003–2013, we examine the impacts of China's DZ program on city-level haze pollution by employing a spatial panel method that accounts for potential spatial spillover effects. After distinguishing between province-level and national-level zones, we show that province-level DZs significantly increase haze pollution whereas national-level DZs have no significant effects. The mediating effect analysis shows that technology innovation plays a critical role in alleviating haze pollution, partially offsetting the negative impacts caused by heavy investments in DZs and the concentrated discharge of pollutants due to industry agglomeration. These findings suggest that the environmental impacts differ quite significantly depending on the types of the DZ and such place-based policies should take into account both economic and environmental objectives by optimizing investment structure, adjusting the industrial layout, and improving technology.

Suggested Citation

  • Zhao, Chuanmin & Xie, Rui & Ma, Chunbo & Han, Feng, 2022. "Understanding the haze pollution effects of China's development zone program," Energy Economics, Elsevier, vol. 111(C).
    • Handle: RePEc:eee:eneeco:v:111:y:2022:i:c:s0140988322002432
    DOI: 10.1016/j.eneco.2022.106078
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    5. Xu, Zhiwei & Wen, Qiang & Zhang, Teng, 2023. "Trade policy and air pollution: Evidence from the adjustment of the export tax rebate in China," Economic Modelling, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    Development zone; Haze pollution; China;
    All these keywords.

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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