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The consequences of spatially differentiated water pollution regulation in China

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  • Chen, Zhao
  • Kahn, Matthew E.
  • Liu, Yu
  • Wang, Zhi

Abstract

This paper studies the consequences of China's recent water pollution regulation. We find evidence that the regulation reduces pollution-intensive activity in highly regulated areas. Relative to the locations where regulations are more stringent (downstream cities), locations where regulations are less stringent (upstream cities) attract more water-polluting activity. As polluting activity concentrates upstream, a larger proportion of the river and more poor residents are exposed to high levels of pollution.

Suggested Citation

  • Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
  • Handle: RePEc:eee:jeeman:v:88:y:2018:i:c:p:468-485
    DOI: 10.1016/j.jeem.2018.01.010
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    More about this item

    Keywords

    Water pollution regulation; Firm production; Domestic pollution havens; China;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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