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Environmental regulation and high-quality sustainable development of China's economy – an empirical study based on a spatial durbin model and threshold model

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  • Shuangpeng Yang
  • Zhonglu Chen
  • Muhammad Umar
  • Ambreen Khursheed

Abstract

Coordinating and managing the contradictions among the environment, resources and economy is an urgent problem in China. Based on the panel data of 30 provinces and cities in China from 2004 to 2017, this paper empirically studies the impact of environmental regulation on China's high-quality economic development and the mediating effect mechanism through the spatial Durbin model and threshold model. The results show that China's high-quality economic development shows a fluctuating upward trend, and the east is higher than the middle and west. Environmental regulation significantly inhibits high-quality economic development, but its impact is moderated by accelerating industrial upgrading, promoting technological innovation, and enhancing foreign direct investment. As the primary driving force, technological innovation has a significant spatial spillover effect. The results show that industrial upgrading has no threshold effect, and technological innovation and foreign direct investment have the characteristics of a ‘U’ single threshold.

Suggested Citation

  • Shuangpeng Yang & Zhonglu Chen & Muhammad Umar & Ambreen Khursheed, 2022. "Environmental regulation and high-quality sustainable development of China's economy – an empirical study based on a spatial durbin model and threshold model," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 5699-5718, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:5699-5718
    DOI: 10.1080/1331677X.2022.2035243
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