CO2 emissions, environmental governance and high-quality economy: evidence from counties of the Yellow River Basin

Xianchun Liao and Mengqi Shen

Chapter 12 in Handbook on Economic Growth and the Environment, 2026, pp 287-311 from Edward Elgar Publishing

Abstract: Developing countries’ economies are the key to achieving high-quality economic development (HQED) and “dual carbon” for developing countries like China, particularly in its Yellow River Basin (YRB). The study in this chapter used generalized method of moments (GMM), difference-in-differences (DID), and the spatial Durbin model (SDM) to answer the question of why CO2 emissions influence HQED in the 461 counties of the YRB from 2010 to 2017. It found that: (1) CO2 emissions have considerably detrimental effects on counties’ HQED, a conclusion that remains valid after robust testing; (2) the analysis of moderating effects shows that government environmental governance has a corrective effect on the externalities generated by CO2; (3) the analysis of mediating effects shows that industrial structure plays a mediating effect in the relationship between CO2 emissions and HQED in YRB counties; and (4) CO2 emissions have detrimental spatial spillover influences on HQED by using SDM. Correspondingly, three policy implications are drawn.

Keywords: Carbon Emission; High-Quality Economic Development; GMM-DID; Spatial Durbin Model; Government Environmental Governance; Industrial Structure (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035322589
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