To What Extent Does Environmental Regulation Influence Emission Reduction? Evidence from Local and Neighboring Locations in China

Jing Song, Mengyuan Li, Shaosong Wang () and Tao Ye
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Jing Song: School of Business, Macau University of Science and Technology, Macao 999078, China
Mengyuan Li: School of Economics, Shenzhen Polytechnic, Shenzhen 518055, China
Shaosong Wang: School of Business, Macau University of Science and Technology, Macao 999078, China
Tao Ye: School of Business, Macau University of Science and Technology, Macao 999078, China

Sustainability, 2022, vol. 14, issue 15, 1-9

Abstract: Setting environmental regulation policy is an important practice to reach the goal of ecological environmental protection. By establishing fixed effects and spatial spillover models, this paper examines the relationship between the environmental regulation of carbon emissions and the impact on spatial spillovers. The results of our analysis show that: 1. environmental regulation has significant inhibitory effects on carbon emissions, which is beneficial to carbon dioxide emission reduction, and 2. environmental regulation has a significant inhibitory impact on local carbon emissions but increases carbon emissions in neighboring locations. Therefore, in order to achieve the aim of carbon emission reduction, appropriate environmental regulation policies should be established, which, in turn, would provide better coordination of the carbon emission relationship between different regions. Meanwhile, environmental regulation plays an important role in protecting the environment. To strengthen environmental governance and promote the coordinated development of regional carbon emission reduction, we need to implement a top-level design of environmental regulation and build a market-oriented environmental regulation system.

Keywords: environmental regulation; carbon emissions; regional coordination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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