Skip to main content
×
Home
    • Aa
    • Aa

Transboundary pollution in China: a study of polluting firms' location choices in Hebei province

  • Chloé Duvivier (a1) and Hang Xiong (a2)
Abstract
Abstract

Transboundary pollution is a particularly serious problem as it leads people located at regional borders to disproportionately suffer from pollution. In China, where the environmental policy is decentralized and where environmental conflicts between provinces have occurred several times, transboundary pollution is likely to exist. However, until now, nearly all the studies have focused on developed countries. In this paper we study whether transboundary pollution problems exist in China. To do so, we estimate whether, within Hebei province, polluting firms are more likely to set up in border counties than in interior ones. The estimations of a count-data model allow us to conclude that border counties are more attractive destinations for polluting firms than counties located within the province. Moreover, it appears that this effect has strengthened over time.

Copyright
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

J.M. Arauzo-Carod , D. Liviano-Solis , and M. Manjn-Antoln (2010), ‘Empirical studies in industrial location: an assessment of their methods and results’, Journal of Regional Science 50(3): 685711.

J.K. Bartik (1985), ‘Business location decisions in the United States: estimates of the effects of unionization, taxes, and other characteristics of states’, Journal of Business & Economic Statistics 3(1): 1422.

A.C. Cameron and P.K. Trivedi (1998), Regression Analysis of Count Data, Cambridge: Cambridge University Press.

S. Dasgupta , B. Laplante , N. Mamingi , and H. Wang (2001), ‘Inspections, pollution prices, and environmental performance: evidence from China’, Ecological Economics 36(3): 487498.

J.M. Dean , M.E. Lovely , and H. Wang (2009), ‘Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China’, Journal of Development Economics 90(1): 113.

W.B. Gray and R.J. Shadbegian (2004), ‘Optimal pollution abatement – whose benefits matter, and how much?’, Journal of Environmental Economics and Management 47(3): 510534.

C.D. Harris (1954), ‘The market as a factor in the localization of industry in the United States’, Annals of the Association of American Geographers 44(4): 315348.

K. Head and T. Mayer (2004), ‘Market potential and the location of Japanese investment in the European Union’, Review of Economics and Statistics 86(4): 959972.

E. Helland and A.B. Whitford (2003), ‘Pollution incidence and political jurisdiction: evidence from the TRI’, Journal of Environmental Economics and Management 46(3): 403424.

A. Holl (2004), ‘Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain’, Regional Science and Urban Economics 34(3): 341363.

T.J. Holmes (1998), ‘The effect of state policies on the location of manufacturing: evidence from state borders’, Journal of Political Economy 106(4): 667705.

A. Jalil and S.F. Mahmud (2009), ‘Environment Kuznets curve for CO2 emissions: a cointegration analysis for China’, Energy Policy 37(12): 51675172.

M.E. Kahn (2004), ‘Domestic pollution havens: evidence from cancer deaths in border counties’, Journal of Urban Economics 56(1): 5169.

D.M. Konisky and N.D. Woods (2010), ‘Exporting air pollution? Regulatory enforcement and environmental free riding in the United States’, Political Research Quarterly 63(4): 771782.

J.A. List (2001), ‘US county-level determinants of inbound FDI: evidence from a two-step modified count data model’, International Journal of Industrial Organization 19(6): 953973.

C. Ma (2010), ‘Who bears the environmental burden in China – an analysis of the distribution of industrial pollution sources?’, Ecological Economics 69(9): 18691876.

B. Roberto (2004), ‘Acquisition versus greenfield investment: the location of foreign manufacturers in Italy’, Regional Science and Urban Economics 34(1): 325.

H. Sigman (2002), ‘International spillovers and water quality in rivers: do countries free ride?’, American Economic Review 92(4): 11521159.

H. Sigman (2005), ‘Transboundary spillovers and decentralization of environmental policies’, Journal of Environmental Economics and Management 50(1): 82101.

T. Song , T. Zheng , and L. Tong (2008), ‘An empirical test of the environmental Kuznets curve in China: a panel cointegration approach’, China Economic Review 19(3): 381392.

Q.H. Vuong (1989), ‘Likelihood ratio tests for model selection and non-nested hypotheses’, Econometrica 57(2): 307333.

H. Wang (2002), ‘Pollution regulation and abatement efforts: evidence from China’, Ecological Economics 41(1): 8594.

H. Wang and D. Wheeler (2005), ‘Financial incentives and endogenous enforcement in China's pollution levy system’, Journal of Environmental Economics and Management 49(1): 174196.

H. Wang , N. Mamingi , B. Laplante , and S. Dasgupta (2003), ‘Incomplete enforcement of pollution regulation: bargaining power of Chinese factories’, Environmental and Resource Economics 24(3): 245262.

M. Wen (2004), ‘Relocation and agglomeration of Chinese industry’, Journal of Development Economics 73(1): 329347.

F. Wu (1999), ‘Intrametropolitan FDI firm location in Guangzhou, China. A Poisson and negative binomial analysis’, Annals of Regional Science 33(4): 535555.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Environment and Development Economics
  • ISSN: 1355-770X
  • EISSN: 1469-4395
  • URL: /core/journals/environment-and-development-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×
Type Description Title
PDF
Supplementary Materials

Duvivier Supplementary Material
Appendix

 PDF (152 KB)
152 KB

Metrics

Full text views

Total number of HTML views: 8
Total number of PDF views: 32 *
Loading metrics...

Abstract views

Total abstract views: 244 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 25th June 2017. This data will be updated every 24 hours.