Does foreign direct investment affect environmental pollution in China's cities? A spatial econometric perspective

Liu, Qianqian; Wang, Shaojian; Zhang, Wenzhong; Zhan, Dongsheng; Li, Jiaming

doi:10.1016/j.scitotenv.2017.09.110

Cited by 267 publications

(112 citation statements)

References 42 publications

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“…This means that in prefectural-level cities in China, environment regulation factors have produced some effects in reducing the emissions of these two pollutants while the industrial structure (level of industrialization) can increase the emissions of these two pollutants. These impacts of industrial structure and environmental regulation on SO 2 are also supported by other research [27]. However, the effect strength of these two paths shows a gradual weakening.…”

Section: Discussionsupporting

confidence: 79%

“…In addition, research results could be different when different quantitative methods are used [21,22]. Substantial empirical studies have been conducted to investigate the existence of EKC in China, such as those with provinces [23][24][25][26] or prefecture-level cities [27] as spatial units, or those with particular regions as research subjects [28,29]. However, no consensus has been reached [30].…”

Section: Introductionmentioning

confidence: 99%

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Economic Growth and Pollution Emission in China: Structural Path Analysis

et al. 2018

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Abstract:The relationship between economic growth and environmental pollution has long been a controversial topic. However, simply the detection of the existence of environmental Kuznets curve (EKC) is not enough to understand how economic growth induced environmental pollution. This study investigated the path and mechanism of the effect of economic growth on the emission of two types of environmental pollutants, that is, industrial smoke and dust and sulfur dioxide, by using a structural equation model and a sample of 283 prefecture-level cities in China in 2005 and 2015. The research results show that economic growth exerted both direct and indirect effects on the emission of the two environmental pollutants. In addition to a direct impact through the economic scale effect, economic growth also indirectly impacted the two environmental pollutants emissions through three mediators, that is, industrial structure, technological innovations and environmental regulations. For different pollutants, the effect paths of economic growth on their emission showed both similarities and differences. First, with regards to industrial smoke and dust emissions and sulfur dioxide emissions, the effects of economic growth on the amount of these two emissions through environmental regulations and the industrial structure were negative inhibitory effects and positive promoting effects, respectively. This means that in prefectural-level cities in China, environmental regulation factors have produced some effects in reducing the emissions of these two pollutants while the industrial structure (level of industrialization) can increase the emissions of these two pollutants. However, the effect strength of these two paths shows a gradual weakening. Second, these two paths differ in effect strength and its changes. The positive promoting effects of the industrial structure on pollutant emission are significantly higher than the inhibitory effects of environmental regulation. In addition, our study also found that the direct impact path of economic growth on environmental pollution also passed significance testing, particularly in 2015. This shows that other reasons affect pollutant emission, such as system factors, spatial migration of industries and so forth.

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Section: Discussionsupporting

confidence: 79%

Section: Introductionmentioning

confidence: 99%

Economic Growth and Pollution Emission in China: Structural Path Analysis

et al. 2018

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“…The negative coefficient of opening-up (open) indicates that foreign direct investment (FDI) will improve air quality to a certain extent. On the one hand, the increase in foreign investment and international trade may improve investment in environmental governance, thus, reducing local haze pollution [36]. Multinational companies, advanced in technology and management experience, are more inclined to implement the environmental regulatory standards of source countries, thereby, reducing resource consumption and pollution emissions, improving environmental quality through the "demonstration" and "spill" effects to improve the local environmental technology level, thereby, creating what is known as a "pollution halo" [37,38].…”

Section: Identification Of Factors Affecting Haze Pollutionmentioning

confidence: 99%

Estimating the Effects of Economic Agglomeration on Haze Pollution in Yangtze River Delta China Using an Econometric Analysis

Wang

Jin

et al. 2019

Sustainability

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Haze pollution, a serious livelihood and environmental issue, has hindered China’s economic development. This paper, based on the improved output density model, empirically analyzes spatial patterns and impact factors of haze pollution within the Yangtze River Delta from 2015 to 2017 by statistical and spatial econometric models. The study shows that: (1) The characteristics of haze pollution due to seasonal changes are obvious in the Yangtze River Delta region, and the situation has gradually improved. (2) The haze pollution has significant local agglomeration characteristics and spatial heterogeneity, demonstrated as significant low-level agglomerations in Hangzhou, Ningbo, and Taizhou, and high agglomerations in Chuzhou, Yangzhou, Zhenjiang, and Taizhou. The polluted area clusters around the provincial boundary, and its level gradually decreases from northwest to southeast. There is a significant spatial positive correlation and spatial spillover effect of intercity haze pollution, which will have a negative impact on the region and surrounding areas. (3) The population growth, research and development (R&D) investment, industrial structure, industrial smoke and dust emissions, and urban construction in the Yangtze River Delta have positive impacts on haze pollution, while factors, such as investment intensity of foreign direct investment (FDI), energy consumption and precipitation, have a negative impact on smog pollution. However, there is no Kuznets curve relationship between smog pollution and economic growth. By optimizing spatial distribution, incorporating production factors, and sharing pollution control infrastructure, this paper shows that economic agglomeration has an inhibitory effect on haze pollution.

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“…It is evident from this table that different studies have provided contradictory results. Recently, Liu et al [46] have also shown that FDI has different effects on distinct pollutant variables, as FDI has decreased dust pollution and waste soot, while it has increased waste water and air pollution. Similarly, Yang and Wang [47] have found that FDI has increased air pollution and has decreased solid waste.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach

et al. 2018

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By applying the wavelet tool, this study examines the effect of foreign direct investment (FDI) on pollution in China, for the period 1982 to 2016. Carbon dioxide and sulfur dioxide emissions are used as pollution variables. The results reveal that FDI positively affected pollution at high frequency (short term) during the 1980s and after 2000, and at low frequency (long term) but not at medium frequency (medium term) for the entire time period. It demonstrates that FDI increases pollution both in the short and long term, but not in the medium term. It indicates that FDI has created pollution havens in China. For robustness analysis, spectral causality test was applied. The results of this causality test indicate that FDI causes CO2 emissions both in the short-run and long-run. This suggests that in China FDI predicts CO2 emissions. Thus, stringent environmental rules are required to restrict the inflows of foreign dirty industries in China.

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Does foreign direct investment affect environmental pollution in China's cities? A spatial econometric perspective

Cited by 267 publications

References 42 publications

Economic Growth and Pollution Emission in China: Structural Path Analysis

Economic Growth and Pollution Emission in China: Structural Path Analysis

Estimating the Effects of Economic Agglomeration on Haze Pollution in Yangtze River Delta China Using an Econometric Analysis

Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach

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