The Consequences of Spatially Differentiated Water Pollution Regulation in China

Zhao Chen (), Matthew Kahn, Liu Yu () and Zhi Wang ()

Working Papers from eSocialSciences

Abstract: China’s environmental regulators have sought to reduce the Yangtze River’s water pollution. This paper documents that this regulatory effort has had two unintended consequences. First, the regulation’s spatial differential stringency has displaced economic activity upstream. As polluting activity agglomerates upstream, more Pigouvian damage is caused downstream. Second, the regulation has focused on reducing one dimension of water pollution called chemical oxygen demand (COD). Thus, local officials face weak incentives to engage in costly effort to reduce other non-targeted but more harmful water pollutants such as petroleum, lead, mercury, and phenol. [Working Paper 22507]

Keywords: Water Pollution Regulation; environmental regulators; Yangtze River; China; Pigouvian damage; chemical oxygen demand (COD); harmful water pollutants; petroleum; lead; mercury; and phenol (search for similar items in EconPapers)
Date: 2016-08
Note: Institutional Papers
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: The consequences of spatially differentiated water pollution regulation in China (2018)
Working Paper: The Consequences of Spatially Differentiated Water Pollution Regulation in China (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:11231

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