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Industrial land transfer and enterprise pollution emissions: Evidence from China

Caiquan Bai, Dongshui Xie and Yuwei Zhang

Economic Analysis and Policy, 2024, vol. 81, issue C, 181-194

Abstract: This study explores how large-scale and low-price industrial land transfer by local governments affects industrial enterprises’ pollution emissions in China. While many studies have examined industrial land transfer's implications for the macroeconomic outcomes, little attention has been paid to its impacts on industrial enterprises’ pollution emissions. Using data on China's city-level industrial land and enterprises from 2007 to 2014, we find that the large-scale and low-price industrial land transfer significantly increases industrial pollutant emissions. Cities with a larger scale of industrial land transfer experience higher total and per capita industrial enterprise emissions. Moreover, this effect is mainly observed in the central and western regions because of differences in institutional quality. Further analysis suggests that land resource misallocation and land law violations are the mechanisms through which industrial land transfer exacerbates environmental pollution. The findings imply that breaking the monopoly of land transfer by local governments can help reduce environmental pollution.

Keywords: Environmental pollution; Industrial land transfer; Local government competition; Industrial enterprise (search for similar items in EconPapers)
JEL-codes: Q51 Q53 R14 R52 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:81:y:2024:i:c:p:181-194

DOI: 10.1016/j.eap.2023.11.029

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