Performance Evaluation of Economic Relocation Effect for Environmental Non-Governmental Organizations: Evidence from China

Li Guangqin, Luo Ji () and Liu Siyan
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Li Guangqin: School of International Trade & Economics, Anhui University of Finance & Economics, Bengbu, 233030, China
Luo Ji: School of Economics & Management, Shanghai Polytechnic University, Shanghai, 201209, China
Liu Siyan: Guiyang Central Sub-branch, The People’s Bank of China, Guiyang, 550027, China

Economics - The Open-Access, Open-Assessment Journal, 2024, vol. 18, issue 1, 18

Abstract: In this article, an economic natural experiment in China is analyzed and the performance evaluation of the economic relocation effect of informal environmental regulations imposed through the channel of environmental nongovernmental organizations (ENGOs) is suggested. ENGOs are found to have a significantly negative impact on the overall economic location quotient of six major polluting industries. The economic relocation effect from ENGOs exhibits industrial and regional heterogeneity, as the effect is stronger among easy-to-relocate industries and in market-oriented areas. The underlying mechanism is the ENGOs, as informal environmental regulations could motivate firms to enhance their investment in environmental governance, ultimately crowding out these economically polluting industries.

Keywords: economic relocation effect; environmental nongovernmental organizations; informal environmental regulation; pollution haven (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:econoa:v:18:y:2024:i:1:p:18:n:1026

DOI: 10.1515/econ-2022-0080

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