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The optimal environmental regulation policy combination for high-quality economic development based on spatial Durbin and threshold regression models

Author

Listed:
  • Weixue Lu

    (Nanjing University of Aeronautics and Astronautics
    University of Calgary)

  • Hecheng Wu

    (Nanjing University of Aeronautics and Astronautics)

  • Liwen Wang

    (Nanjing University of Aeronautics and Astronautics)

Abstract

It is essential to explore the optimal environmental regulation policy combination for high-quality economic development due to the mutual constraints and confrontation between environmental regulation policies. Based on provincial panel data of China from 2000 to 2019, this study uses the spatial Durbin model to examine the synergy effect of different environmental regulation policy combinations on high-quality economic development from the dual perspective of local effects and spillover effect of environmental regulation, respectively. Furthermore, it explores the threshold effect of environmental regulation policy synergy on high-quality economic development through technological innovation at provincial level as well as in three major regions of China using the threshold regression model. The results indicate that environmental regulation policy synergy has a spatial spillover effect on high-quality economic development, and there is a positive U-shaped relationship with them no matter which policy combination. However, there are significant differences in the local effects and spillover effects of environmental regulation policy synergy under different policy combinations. Moreover, there is a double threshold for environmental regulation policy synergy effect on high-quality economic development except in central China, which policy combinations of 13 and 23 have a single threshold effect, while the other policy combinations have no threshold effect. Finally, the optimal environmental regulation policy combination for high-quality economic development is given through comparative analysis. In response to the above conclusions, this paper puts forward the targeted policy implications.

Suggested Citation

  • Weixue Lu & Hecheng Wu & Liwen Wang, 2023. "The optimal environmental regulation policy combination for high-quality economic development based on spatial Durbin and threshold regression models," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7161-7187, July.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:7:d:10.1007_s10668-022-02372-w
    DOI: 10.1007/s10668-022-02372-w
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