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Corruption, market segmentation and haze pollution: empirical evidence from China

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  • Junfeng Zhao
  • Jianliang Shen
  • Jinling Yan
  • Xiaodong Yang
  • Yu Hao
  • Qiying Ran

Abstract

Corruption and market segmentation generally result from inter-regional resource allocation mechanism at the level of government and market, and it is of great significance to clarify their effects on haze pollution for the healthy development of the regional economy. With theoretical analysis, this paper applies systematic GMM to examine the impact of corruption on haze pollution. The mediatory effect model is used to further evaluate the mediatory effect of market segmentation by using panel data for 30 provinces in China from 2006 to 2018. The evaluations reveal that corruption positively affects haze pollution at the 1% significance level and has a prominent “time inertia”. After alleviation of the endogenous problem and a series of robustness tests, this conclusion remains valid. Based on national samples, corruption, especially environmental corruption, not only directly provokes an increase in haze pollution, but also aggravates it through market segmentation, and, the impact of corruption on haze pollution in different regions and at different periods has significant heterogeneity. Therefore, policymakers should start from the institutional mechanism to curb haze pollution by improving the performance appraisal system. Moreover, the synergistic effect between anti-corruption and governance on the environment should be enhanced by improving the anti-corruption management system. Local protectionism should be eliminated to promote the integration of regional markets. A unified, open and organized market system should be established to form the synergy of governance on the environment.

Suggested Citation

  • Junfeng Zhao & Jianliang Shen & Jinling Yan & Xiaodong Yang & Yu Hao & Qiying Ran, 2023. "Corruption, market segmentation and haze pollution: empirical evidence from China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(3), pages 642-664, February.
    • Handle: RePEc:taf:jenpmg:v:66:y:2023:i:3:p:642-664
    DOI: 10.1080/09640568.2021.2001316
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    Cited by:

    1. Muhammad Sadiq & Syed Tauseef Hassan & Irfan Khan & Mohammad Mafizur Rahman, 2024. "Policy uncertainty, renewable energy, corruption and CO2 emissions nexus in BRICS-1 countries: a panel CS-ARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21595-21621, August.
    2. Yi, Zhang & Zhou, Wenwu & Razzaq, Asif & Yang, Yao, 2023. "Land resource management and sustainable development: Evidence from China's regional data," Resources Policy, Elsevier, vol. 84(C).
    3. Tianmiao Guo & Jian Li & Fengyue Gao & Shuhua Zhang, 2023. "Examining the Impact of Market Segmentation on Carbon Emission Intensity in China," Sustainability, MDPI, vol. 15(24), pages 1-19, December.
    4. Muhammad Zaheer Akhtar & Khalid Zaman & Muhammad Azhar Khan, 2024. "Governance, foreign investment, and growth: the impact of governance indicators, foreign direct investment, economic expansion, and industrialization on carbon emissions," SN Business & Economics, Springer, vol. 4(12), pages 1-25, December.
    5. Lin Wang & Yugang He & Renhong Wu, 2024. "Digitization Meets Energy Transition: Shaping the Future of Environmental Sustainability," Energies, MDPI, vol. 17(4), pages 1-25, February.
    6. Xuebing Dong & Benbo Liang & Haichao Yu & Hui Zhu, 2023. "Market Segmentation and Green Development Performance: Evidence from Chinese Cities," IJERPH, MDPI, vol. 20(5), pages 1-24, March.

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