IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v94y2020ics0264837719306325.html
   My bibliography  Save this article

Do land price variation and environmental regulation improve chemical industrial agglomeration? A regional analysis in China

Author

Listed:
  • Wang, Qian
  • Wang, Yanan
  • Chen, Wei
  • Zhou, Xue
  • Zhao, Minjuan
  • Zhang, Bangbang

Abstract

China’s governments have a strong control over resources, such as land resources, and determine environmental policies for the nation. As an essential part of the production cost of chemical enterprises, land price and pollution costs play a critical role in location selection. However, whether the current incompletely competitive industrial land market and improving environmental regulations in China would affect chemical industrial agglomeration (CIA) is unclear. This study incorporates the land price variations, environmental regulation, and CIA into one research framework. Calculation methods of industrial land price variation (LPV), environmental regulation (ERI), and CIA are established, to reveal their development level. Furthermore, a geographically and temporally weighted regression (GTWR) model is established to estimate the spatial and temporal impacts of land price variation and environmental regulation on CIA by using a panel data from 2007 to 2015. The results show significant spatial differences in the impacts of land price variation and environmental regulation on CIA between cities. The majority of the impacts of land price variation and environmental regulation on CIA are negative. However, the temporal change in the impacts are not as significant as the spatial change. Other control variables, namely, free trade, natural resources, and highway density, have a positive impact on CIA.

Suggested Citation

  • Wang, Qian & Wang, Yanan & Chen, Wei & Zhou, Xue & Zhao, Minjuan & Zhang, Bangbang, 2020. "Do land price variation and environmental regulation improve chemical industrial agglomeration? A regional analysis in China," Land Use Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719306325
    DOI: 10.1016/j.landusepol.2020.104568
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719306325
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104568?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-1055, July.
    2. Tonghui Lian & Tingyu Ma & Jie Cao & You Wu, 2016. "The effects of environmental regulation on the industrial location of China’s manufacturing," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 80(2), pages 1381-1403, January.
    3. Liguo Lin & Wei Sun, 2016. "Location choice of FDI firms and environmental regulation reforms in China," Journal of Regulatory Economics, Springer, vol. 50(2), pages 207-232, October.
    4. Diego Restuccia & Richard Rogerson, 2008. "Policy Distortions and Aggregate Productivity with Heterogeneous Plants," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 707-720, October.
    5. Zhen Xu & Jianbai Huang & Feitao Jiang, 2017. "Subsidy competition, industrial land price distortions and overinvestment: empirical evidence from China’s manufacturing enterprises," Applied Economics, Taylor & Francis Journals, vol. 49(48), pages 4851-4870, October.
    6. Michael Greenstone & John A. List & Chad Syverson, 2011. "The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing," Working Papers 11-03, Center for Economic Studies, U.S. Census Bureau.
    7. Imaizumi, Asuka & Ito, Kaori & Okazaki, Tetsuji, 2016. "Impact of natural disasters on industrial agglomeration: The case of the Great Kantō Earthquake in 1923," Explorations in Economic History, Elsevier, vol. 60(C), pages 52-68.
    8. Kondo, Hiroki, 2013. "International R&D subsidy competition, industrial agglomeration and growth," Journal of International Economics, Elsevier, vol. 89(1), pages 233-251.
    9. Zeng, Dao-Zhi & Zhao, Laixun, 2009. "Pollution havens and industrial agglomeration," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 141-153, September.
    10. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2013. "Environmental policy, first nature advantage and the emergence of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 101-116.
    11. Rodriguez Lopez, Juan Miguel & Sakhel, Alice & Busch, Timo, 2017. "Corporate investments and environmental regulation: The role of regulatory uncertainty, regulation-induced uncertainty, and investment history," European Management Journal, Elsevier, vol. 35(1), pages 91-101.
    12. Tian, Jinping & Shi, Han & Li, Xing & Chen, Lujun, 2012. "Measures and potentials of energy-saving in a Chinese fine chemical industrial park," Energy, Elsevier, vol. 46(1), pages 459-470.
    13. Chen, Wei & Shen, Yue & Wang, Yanan & Wu, Qun, 2018. "How do industrial land price variations affect industrial diffusion? Evidence from a spatial analysis of China," Land Use Policy, Elsevier, vol. 71(C), pages 384-394.
    14. Quah, Danny, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
    15. Becker, Randy A., 2011. "Local environmental regulation and plant-level productivity," Ecological Economics, Elsevier, vol. 70(12), pages 2516-2522.
    16. Leiter, Andrea M. & Parolini, Arno & Winner, Hannes, 2011. "Environmental regulation and investment: Evidence from European industry data," Ecological Economics, Elsevier, vol. 70(4), pages 759-770, February.
    17. Ben Kheder, Sonia & Zugravu, Natalia, 2012. "Environmental regulation and French firms location abroad: An economic geography model in an international comparative study," Ecological Economics, Elsevier, vol. 77(C), pages 48-61.
    18. Becker, Randy A., 2011. "Local environmental regulation and plant-level productivity," Ecological Economics, Elsevier, vol. 70(12), pages 2516-2522.
    19. Nichols, Joseph B. & Oliner, Stephen D. & Mulhall, Michael R., 2013. "Swings in commercial and residential land prices in the United States," Journal of Urban Economics, Elsevier, vol. 73(1), pages 57-76.
    20. Rema Hanna, 2010. "US Environmental Regulation and FDI: Evidence from a Panel of US-Based Multinational Firms," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 158-189, July.
    21. Ning, Lutao & Wang, Fan & Li, Jian, 2016. "Urban innovation, regional externalities of foreign direct investment and industrial agglomeration: Evidence from Chinese cities," Research Policy, Elsevier, vol. 45(4), pages 830-843.
    22. Wang, Han & Wu, Xingyi & Wu, Di & Nie, Xin, 2019. "Will land development time restriction reduce land price? The perspective of American call options," Land Use Policy, Elsevier, vol. 83(C), pages 75-83.
    23. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    24. Tian, Peng & Lin, Boqiang, 2017. "Promoting green productivity growth for China's industrial exports: Evidence from a hybrid input-output model," Energy Policy, Elsevier, vol. 111(C), pages 394-402.
    25. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    26. Hsu, Wen-Tai & Wang, Ping, 2012. "Trade, firm selection, and industrial agglomeration," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 975-986.
    27. Wu, Haoyi & Guo, Huanxiu & Zhang, Bing & Bu, Maoliang, 2017. "Westward movement of new polluting firms in China: Pollution reduction mandates and location choice," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 119-138.
    28. Pappas, Dimitrios & Chalvatzis, Konstantinos J. & Guan, Dabo & Ioannidis, Alexis, 2018. "Energy and carbon intensity: A study on the cross-country industrial shift from China to India and SE Asia," Applied Energy, Elsevier, vol. 225(C), pages 183-194.
    29. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Delu & Mao, Jinqi & Cui, Rong & Yu, Jian & Shi, Xunpeng, 2022. "Impact of inter-provincial power resource allocation on enterprise production behavior from a multi-scale correlation perspective," Energy Economics, Elsevier, vol. 114(C).
    2. Hao Su & Shuo Yang, 2022. "Spatio-Temporal Urban Land Green Use Efficiency under Carbon Emission Constraints in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(19), pages 1-28, October.
    3. Jianing Xu & Weidong Li, 2023. "High-Speed Rail and Industrial Agglomeration: Evidence from China’s Urban Agglomerations," Land, MDPI, vol. 12(8), pages 1-18, August.
    4. Krajewska, Małgorzata & Szopińska, Kinga & Siemińska, Ewa, 2021. "Value of land properties in the context of planning conditions risk on the example of the suburban zone of a Polish city," Land Use Policy, Elsevier, vol. 109(C).
    5. Keqiang Wang & Guoxiang Li & Hongmei Liu, 2020. "Location choice of industrial land reduction in Metropolitan Area: Evidence from Shanghai in China," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1837-1859, December.
    6. Kun Zhou & Xingqiang Zheng & Yan Long & Jin Wu & Jianqiang Li, 2022. "Environmental Regulation, Rural Residents’ Health Investment, and Agricultural Eco-Efficiency: An Empirical Analysis Based on 31 Chinese Provinces," IJERPH, MDPI, vol. 19(5), pages 1-16, March.
    7. Hui Zou & Xuejun Duan & Lei Wang & Tingting Jin, 2022. "The effects of environmental regulation on chemical industry location: Evidence from the region along the Yangtze River, China," Growth and Change, Wiley Blackwell, vol. 53(2), pages 800-822, June.
    8. Chen, Wei & Su, Zhi & Wang, Yanan & Wang, Qian & Zhao, Guoli, 2022. "Do the rank difference of industrial development zones affect land use efficiency? A regional analysis in China," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mingquan Li & Qi Wang, 2020. "Does industrial relocation alleviate environmental pollution? A mathematical economics analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 4673-4698, June.
    2. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).
    3. Song, Yang & Liu, Dayu & Wang, Qiaoru, 2021. "Identifying characteristic changes in club convergence of China's urban pollution emission: A spatial-temporal feature analysis," Energy Economics, Elsevier, vol. 98(C).
    4. Saussay, Aurélien & Zugravu-Soilita, Natalia, 2023. "International production chains and the pollution offshoring hypothesis: An empirical investigation," Resource and Energy Economics, Elsevier, vol. 73(C).
    5. Du, Minzhe & Liu, Yunxiao & Wang, Bing & Lee, Myunghun & Zhang, Ning, 2021. "The sources of regulated productivity in Chinese power plants: An estimation of the restricted cost function combined with DEA approach," Energy Economics, Elsevier, vol. 100(C).
    6. Albrizio, Silvia & Kozluk, Tomasz & Zipperer, Vera, 2017. "Environmental policies and productivity growth: Evidence across industries and firms," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 209-226.
    7. Peng, Jiaying & Xie, Rui & Ma, Chunbo & Fu, Yang, 2021. "Market-based environmental regulation and total factor productivity: Evidence from Chinese enterprises," Economic Modelling, Elsevier, vol. 95(C), pages 394-407.
    8. Katie Jo Black & Shawn J. McCoy & Jeremy G. Weber, 2018. "When Externalities Are Taxed: The Effects and Incidence of Pennsylvania’s Impact Fee on Shale Gas Wells," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 107-153.
    9. Cui, Xin & Wang, Panpan & Sensoy, Ahmet & Nguyen, Duc Khuong & Pan, Yuying, 2022. "Green Credit Policy and Corporate Productivity: Evidence from a Quasi-natural Experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    10. Li, Hai-ling & Zhu, Xue-hong & Chen, Jin-yu & Jiang, Fei-tao, 2019. "Environmental regulations, environmental governance efficiency and the green transformation of China's iron and steel enterprises," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    11. -, 2007. "Economic Survey of Latin America and the Caribbean 2006-2007," Estudio Económico de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1065 edited by Eclac, May.
    12. Huang, Youxing & Xu, Qi & Zhao, Yanping, 2021. "Short-run pain, long-run gain: Desulfurization investment and productivity," Energy Economics, Elsevier, vol. 102(C).
    13. Liu, Yunqiang & Zhu, Jialing & Li, Eldon Y. & Meng, Zhiyi & Song, Yan, 2020. "Environmental regulation, green technological innovation, and eco-efficiency: The case of Yangtze river economic belt in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    14. Yingming Zhu & Nian Wang & Ronghui Xie, 2022. "Exploring the Role of Heterogeneous Environmental Regulations in Industrial Agglomeration: A Fresh Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    15. Henryk Gurgul & Łukasz Lach, 2011. "The impact of regional disparities on economic growth," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 21(2), pages 17-43.
    16. Paulo B. Brito, 2022. "The dynamics of growth and distribution in a spatially heterogeneous world," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(3), pages 311-350, September.
    17. Cui, Jingbo & Lapan, Harvey E. & Moschini, GianCarlo, 2012. "Are exporters more environmentally friendly than non-exporters? Theory and evidence," ISU General Staff Papers 201210040700001076, Iowa State University, Department of Economics.
    18. Campi, Mercedes & Dueñas, Marco, 2020. "Volatility and economic growth in the twentieth century," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 330-343.
    19. Nasfi Fkili Wahiba, 2015. "Convergence and Divergence among Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 510-520, March.
    20. Cristina Brasili & Luciano Gutierrez, 2004. "Regional convergence across European Union," Development and Comp Systems 0402002, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719306325. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.