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How does environmental regulation affect economic growth? Evidence from Beijing-Tianjin-Hebei urban agglomeration in China

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  • Yu Hao
  • Yidan Kang
  • Yujia Li
  • Haitao Wu
  • Jingyang Song

Abstract

The governments of the Beijing-Tianjin-Hebei urban agglomeration have introduced a series of environmental policies to ameliorate pollution problems, but there are concerns that such a move can negatively impact the economy. In this article, panel data for 13 prefecture-level cities in the Beijing-Tianjin-Hebei region from 2003 to 2018 are used to investigate the influencing mechanism of environmental regulation on economic growth. The empirical results indicate an inverted “U”-shaped relationship between economic growth and environmental regulation. In a sense, the non-linear relationship implies that the Porter hypothesis and the compliance cost hypothesis apply to different levels of environmental stringency, respectively, which results in an empirical supplement to the existing theoretical framework. Furthermore, energy intensity and industrial structure are valid transmission paths for the economic effect of environmental regulation, despite their opposite directions. Overall, a win–win situation of economic prosperity and ecological improvement can be achieved through the implementation of appropriate environmental regulation.

Suggested Citation

  • Yu Hao & Yidan Kang & Yujia Li & Haitao Wu & Jingyang Song, 2023. "How does environmental regulation affect economic growth? Evidence from Beijing-Tianjin-Hebei urban agglomeration in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(9), pages 1813-1840, July.
    • Handle: RePEc:taf:jenpmg:v:66:y:2023:i:9:p:1813-1840
    DOI: 10.1080/09640568.2022.2042795
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    Cited by:

    1. Ding, Guangyuan & Xiong, Yunbiao & Wang, Yashu, 2024. "Moderating effect of digital governance and eco-policy stringency in realizing natural resources-growth nexus: Role of financial development and FDI in G20 countries," Resources Policy, Elsevier, vol. 92(C).
    2. Chen, Dongxu & Huang, Yin & Tan, Nairong & Hong, Tao & Ma, Tao, 2024. "Cross-regional economic impact of carbon emission regulations: A quantitative spatial equilibrium model for China," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 438-462.
    3. Haoyang Lu & Alistair Hunt & Bruce Morley, 2024. "The Impact of Heterogeneous Environmental Regulation Tools on Economic Growth: Can Environmental Protection and Economic Growth Be Win-Win?," Sustainability, MDPI, vol. 16(13), pages 1-20, June.
    4. Mingze Du & Tongwei Zhang & Dehui Wang, 2023. "Can China’s Campaign-Style Environmental Regulation Improve the Green Total Factor Productivity?," Sustainability, MDPI, vol. 15(24), pages 1-20, December.

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