Environmental Regulation, Industrial Transfer and Reconstruction of China's Economic Geography
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| Title | Environmental Regulation, Industrial Transfer and Reconstruction of China's Economic Geography
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| Author | Wang Jun, Huang Xianhai and Hu Yong |
| Organization | School of Economics, Zhejiang Gongshang University |
| Email | wangjun200213@163.com；hxhhz@126.com；huyong@zjgsu.edu.cn |
| Key Words | Environmental Regulation; Industrial Transfer; Economic Geography; Regional Economics |
| Abstract | In recent years, China governments at all levels strengthen the intensity of environmental regulation gradually, which improving the ecological environment and changing the economic geographical structure: the industrial agglomeration degree of the eastern region decreased while the concentration degree of the mid-west regions increased significantly. Whether the environmental regulation can promote the cross-regional transfer of industry and optimize the structure of China's economic geography has become an important research topic. This paper builds a spatial economic model based on the new economic geography theory (NEG), and analyzes the mirco mechanism that environmental regulation in the long-term equilibrium will break center periphery equilibrium to be symmetric equilibrium and spur the industrial agglomeration to be dispersed. The numerical simulation results reveal that the environmental regulation is the centrifugal force of industrial agglomeration, and the strengthening of environmental regulation promotes the industrial transfer, but the rate of industrial transfer gradually slows down with the improvement of environmental quality. Further econometric tests also confirm that environmental regulation can inhibit industrial agglomeration, but the promotion to regional balanced development is weak, which is not enough to change the pattern of China's industrial space significantly. The policy implications of this paper are that it is possible to break the spatial pattern of China's unbalanced development and reshape the economic geography by strengthening environmental regulation. |
| Serial Number | WP1115 |
| Time | 2016-09-19 |
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