IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2780-d1056775.html
   My bibliography  Save this article

The Environmental, Economic and Social Welfare Impacts of the CCREW Project in China: A Study Based on the CGE Model

Author

Listed:
  • Ze Feng

    (School of International Economics and Trade, University of International Business and Economics, Beijing 100029, China)

  • Yingfei Huang

    (School of International Economics and Trade, University of International Business and Economics, Beijing 100029, China)

  • Zhaoyang Kong

    (Business School, University of International Business and Economics, Beijing 100029, China)

Abstract

Countries around the world have carried out digital transformations to improve their economic resilience. As the largest developing country, China put forward the “channeling computing resources from the East to the West (CCREW)” project in 2022 to balance and promote the development of various regions. This paper constructs a three-region computable general equilibrium model covering the eastern, western, and other regions and evaluates the impact of the project on economic development, social welfare, and carbon emissions in different regions. By simulating the transfer share of the CCREW project, this paper attempts to further reveal the impact of the policy both on regional differences and national development. The results show that the effects of the project are quite different among regions. Our findings can be summarized as follows. (1) In terms of carbon dioxide emissions, the policy will cause emissions to shift from the East to the West. (2) In terms of economic development, the policy will lead to an overall downward trend in the GDP of the eastern and other regions, whereas for the western region, the policy will promote the development of the regional economy. Regional differences may affect the implementation of the policy and its effects. (3) In terms of social welfare, the policy will result in an inverted U-shaped change in social welfare at the national level, which first rises and then falls, and will change from positive to negative when the transfer share exceeds 20%. At the regional level, social welfare in the eastern and other regions will decline, whereas that in the western region will show an inverted U-shaped change that first increases and then decreases. (4) In the short term, the project at the national level has reduced carbon emissions at the expense of economic development and incurred a loss in social welfare.

Suggested Citation

  • Ze Feng & Yingfei Huang & Zhaoyang Kong, 2023. "The Environmental, Economic and Social Welfare Impacts of the CCREW Project in China: A Study Based on the CGE Model," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2780-:d:1056775
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2780/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/3/2780/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Diao, Xinshen & Rattso, Jorn & Stokke, Hildegunn Ekroll, 2005. "International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis," Journal of Development Economics, Elsevier, vol. 76(2), pages 429-450, April.
    2. Bai, Hanyu & Irfan, Muhammad & Hao, Yu, 2022. "How does industrial transfer affect environmental quality? Evidence from China," Journal of Asian Economics, Elsevier, vol. 82(C).
    3. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
    4. Liu, Chang & Hong, Tao & Li, Huaifeng & Wang, Lili, 2018. "From club convergence of per capita industrial pollutant emissions to industrial transfer effects: An empirical study across 285 cities in China," Energy Policy, Elsevier, vol. 121(C), pages 300-313.
    5. Jinqi Su & Ke Su & Shubin Wang, 2021. "Does the Digital Economy Promote Industrial Structural Upgrading?—A Test of Mediating Effects Based on Heterogeneous Technological Innovation," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    6. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    7. Lin, Boqiang & Huang, Chenchen, 2023. "How will promoting the digital economy affect electricity intensity?," Energy Policy, Elsevier, vol. 173(C).
    8. Zhang, Wei & Liu, Xuemeng & Wang, Die & Zhou, Jianping, 2022. "Digital economy and carbon emission performance: Evidence at China's city level," Energy Policy, Elsevier, vol. 165(C).
    9. Guangxiong Mao & Wei Jin & Ying Zhu & Yanjun Mao & Wei-Ling Hsu & Hsin-Lung Liu, 2021. "Environmental Pollution Effects of Regional Industrial Transfer Illustrated with Jiangsu, China," Sustainability, MDPI, vol. 13(21), pages 1-19, November.
    10. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    11. Gerlagh, Reyer & Kuik, Onno, 2014. "Spill or leak? Carbon leakage with international technology spillovers: A CGE analysis," Energy Economics, Elsevier, vol. 45(C), pages 381-388.
    Full references (including those not matched with items on IDEAS)

    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. Sun, Chuanwang & Khan, Anwar & Xue, Juntao & Huang, Xiaoyong, 2024. "Are digital economy and financial structure driving renewable energy technology innovations: A major eight countries perspective," Applied Energy, Elsevier, vol. 362(C).
    2. Qiuqiu Guo & Xiaoyu Ma, 2023. "How Does the Digital Economy Affect Sustainable Urban Development? Empirical Evidence from Chinese Cities," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    3. Lei Wang & Shibo Liu & Wanfang Xiong, 2022. "The Impact of Digital Transformation on Corporate Environment Performance: Evidence from China," IJERPH, MDPI, vol. 19(19), pages 1-19, October.
    4. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    5. Shunbin Zhong & Huafu Shen & Ziheng Niu & Yang Yu & Lin Pan & Yaojun Fan & Atif Jahanger, 2022. "Moving towards Environmental Sustainability: Can Digital Economy Reduce Environmental Degradation in China?," IJERPH, MDPI, vol. 19(23), pages 1-23, November.
    6. Zhipeng Yu & Yi Liu & Taihua Yan & Ming Zhang, 2024. "Carbon emission efficiency in the age of digital economy: New insights on green technology progress and industrial structure distortion," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4039-4057, July.
    7. Yuqi Zhu & Siwei Shen & Linyu Du & Jun Fu & Jian Zou & Lina Peng & Rui Ding, 2023. "Spatial and Temporal Interaction Coupling of Digital Economy, New-Type Urbanization and Land Ecology and Spatial Effects Identification: A Study of the Yangtze River Delta," Land, MDPI, vol. 12(3), pages 1-27, March.
    8. Zhiqiang Zhou & Wenyan Liu & Pengfei Cheng & Zhenjin Li, 2022. "The Impact of the Digital Economy on Enterprise Sustainable Development and Its Spatial-Temporal Evolution: An Empirical Analysis Based on Urban Panel Data in China," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    9. Suo, Xuekun & Zhang, Longting & Guo, Rong & Lin, Han & Yu, Mingchuan & Du, Xiuhong, 2024. "The inverted U-shaped association between digital economy and corporate total factor productivity: A knowledge-based perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    10. Cuesta-Valiño, Pedro & Gutiérrez-Rodríguez, Pablo & Núnez-Barriopedro, Estela & García-Henche, Blanca, 2023. "Strategic orientation towards digitization to improve supermarket loyalty in an omnichannel context," Journal of Business Research, Elsevier, vol. 156(C).
    11. Liu, Qian & Gao, Jian & Li, Shijie, 2024. "The innovation model and upgrade path of digitalization driven tourism industry: Longitudinal case study of OCT," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    12. Lai, Aolin & Li, Zhenran & Hu, Xiurong & Wang, Qunwei, 2024. "Does digital economy improve city-level eco-efficiency in China?," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1198-1213.
    13. Xu, Yong & Yuan, Ling & Khalfaoui, Rabeh & Radulescu, Magdalena & Mallek, Sabrine & Zhao, Xin, 2023. "Making technological innovation greener: Does firm digital transformation work?," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    14. Lin, Boqiang & Huang, Chenchen, 2023. "How will promoting the digital economy affect electricity intensity?," Energy Policy, Elsevier, vol. 173(C).
    15. Xiang Cheng & Xiaohui Chen, 2024. "The digital economy and power consumption: empirical analysis based on consumption intensity in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 19755-19777, August.
    16. Yan Zhang & Jiekuan Zhang, 2024. "Examining the complex causal relationships between the digital economy and urban tourist destination competitiveness," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-28, August.
    17. Jiaqi Wei & Ying Guo, 2024. "The effect of urban capacity in knowledge recombination on digital economy development," Scientometrics, Springer;Akadémiai Kiadó, vol. 129(9), pages 5373-5402, September.
    18. Lin Zhu & Xiaoming Li & Yao Huang & Fangyuan Liu & Chengji Yang & Dongyang Li & Hongpeng Bai, 2023. "Digital Technology and Green Development in Manufacturing: Evidence from China and 20 Other Asian Countries," Sustainability, MDPI, vol. 15(17), pages 1-20, August.
    19. Zhang, Wenqiu & Zhao, Junli, 2023. "Digital transformation, environmental disclosure, and environmental performance: An examination based on listed companies in heavy-pollution industries in China," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 505-518.
    20. Yi, Jiahui & Dai, Sheng & Li, Lin & Cheng, Jinhua, 2024. "How does digital economy development affect renewable energy innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).

    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:gam:jsusta:v:15:y:2023:i:3:p:2780-:d:1056775. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.