Do land price variation and environmental regulation improve chemical industrial agglomeration? A regional analysis in China

Qian Wang, Yanan Wang, Wei Chen, Xue Zhou, Minjuan Zhao and Bangbang Zhang

Land Use Policy, 2020, vol. 94, issue C

Abstract: China’s governments have a strong control over resources, such as land resources, and determine environmental policies for the nation. As an essential part of the production cost of chemical enterprises, land price and pollution costs play a critical role in location selection. However, whether the current incompletely competitive industrial land market and improving environmental regulations in China would affect chemical industrial agglomeration (CIA) is unclear. This study incorporates the land price variations, environmental regulation, and CIA into one research framework. Calculation methods of industrial land price variation (LPV), environmental regulation (ERI), and CIA are established, to reveal their development level. Furthermore, a geographically and temporally weighted regression (GTWR) model is established to estimate the spatial and temporal impacts of land price variation and environmental regulation on CIA by using a panel data from 2007 to 2015. The results show significant spatial differences in the impacts of land price variation and environmental regulation on CIA between cities. The majority of the impacts of land price variation and environmental regulation on CIA are negative. However, the temporal change in the impacts are not as significant as the spatial change. Other control variables, namely, free trade, natural resources, and highway density, have a positive impact on CIA.

Keywords: Chemical industrial agglomeration; Land price variation; Environmental regulation; Geographically and Temporally Weighted Regression model (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719306325

DOI: 10.1016/j.landusepol.2020.104568

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