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Threshold Effect in the Relationship between Environmental Regulations and Haze Pollution: Empirical Evidence from PSTR Estimation

Author

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  • Yonglian Chang

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

  • Yingjun Huang

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

  • Manman Li

    (Department of Statistics and Actuarial Science, College of Mathematics and Statistics, Chongqing University, Chongqing 400030, China)

  • Zhengmin Duan

    (Department of Statistics and Actuarial Science, College of Mathematics and Statistics, Chongqing University, Chongqing 400030, China)

Abstract

The impact of environmental regulations (ER) on haze pollution control has been continuously debated in the field of sustainable development. This paper explores the direct and indirect threshold effects of ER on haze pollution, and five underlying mechanisms—technological innovation (TI), industrial structure (IS), foreign direct investment (FDI), urbanization (UR), and electricity consumption (EC)—are adopted to investigate the indirect threshold effects. Panel data, over the period 2008–2018, of 284 Chinese cities were used and the threshold effects were predicted endogenously based on the panel smooth transition regression (PSTR) model. The results showed the following: (1) For the direct threshold effect, there exists a U-shaped relationship between ER and haze pollution. ER significantly reduced haze pollution when ER < 38.86 due to “cost effects”. However, ER increased haze pollution after the threshold owing to the “green paradox”, which was not significant. (2) For the indirect threshold effect, when TI = 0.37, IS = 39.61, FDI = 7.25, and UR = 42.86, the relationships between ER and haze pollution changed. The changes and corresponding reasons for the indirect threshold effects are discussed in detail. (3) After a comprehensive analysis, the threshold effects have obvious regional distribution characteristics and internal connections. Finally, based on the results, it is essential for governments to enact appropriate environmental regulatory policies and enhance inter-regional synergies in environmental governance.

Suggested Citation

  • Yonglian Chang & Yingjun Huang & Manman Li & Zhengmin Duan, 2021. "Threshold Effect in the Relationship between Environmental Regulations and Haze Pollution: Empirical Evidence from PSTR Estimation," IJERPH, MDPI, vol. 18(23), pages 1-19, November.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:23:p:12423-:d:688172
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    Cited by:

    1. Tan, Yan & Uprasen, Utai, 2022. "The effect of foreign direct investment on renewable energy consumption subject to the moderating effect of environmental regulation: Evidence from the BRICS countries," Renewable Energy, Elsevier, vol. 201(P2), pages 135-149.
    2. Shuai Wang & Cunyi Yang & Zhenghui Li, 2022. "Green Total Factor Productivity Growth: Policy-Guided or Market-Driven?," IJERPH, MDPI, vol. 19(17), pages 1-19, August.
    3. Keyi Duan & Mingyao Cao & Nurhafiza Abdul Kader Malim & Yan Song, 2022. "Nonlinear Relationship between Financial Development and CO 2 Emissions—Based on a PSTR Model," IJERPH, MDPI, vol. 20(1), pages 1-15, December.

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