Pollution havens and industrial agglomeration

Zeng, Dao‐Zhi; Zhao, Laixun

doi:10.1016/j.jeem.2008.09.003

Cited by 303 publications

(91 citation statements)

References 30 publications

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“…A first attempt to address this issue was made by Motta and Thisse (1994), who analyze the effect of relative market size on location within very restrictive assumptions, considering only low transport costs, and disregarding this issue in the welfare analysis. Zeng and Zhao (2009) instead consider market asymmetry within a monopolistic competition model which does not allow for the export/FDI choice and, in case of FDI, for the choice between partial or total relocation.…”

Section: Stylized Facts and Neglected Location Factorsmentioning

confidence: 99%

The Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry

Randaccio

Sestini

2010

SSRN Journal

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SummaryThis paper analyses the impact of unilateral climate policy on firms' international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of partial and total relocation via foreign direct investment are separately considered. A simple international duopoly model highlights the differences between short-term and long-term effects. In the short-term no change in location is a likely outcome in very capitalintensive sectors, and when there is a strategy shift this takes the form of partial instead of total relocation. In the long-run total relocation becomes a feasible outcome. However we found that, when tighter mitigation measures are introduced by the larger country and unit transport cost is high, with a pronounced market asymmetry the probability of firms not relocating abroad is high even in the long-term. The welfare implications of unilateral environmental measures are assessed considering global industrial pollution and accounting for shifts in location strategy. This paper analyses the impact of unilateral climate policy on firms' international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of partial and total relocation via foreign direct investment are separately considered. A simple international duopoly model highlights the differences between short-term and long-term effects. In the short-term no change in location is a likely outcome in very capital-intensive sectors, and when there is a strategy shift this takes the form of partial instead of total relocation. In the long-run total relocation becomes a feasible outcome. However we found that, when tighter mitigation measures are introduced by the larger country and unit transport cost is high, with a pronounced market asymmetry the probability of firms not relocating abroad is high even in the long-term. The welfare implications of unilateral environmental measures are assessed considering global industrial pollution and accounting for shifts in location strategy. KeywordsJEL classifications: F12, F23, Q58

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Section: Stylized Facts and Neglected Location Factorsmentioning

confidence: 99%

The Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry

Randaccio

Sestini

2010

SSRN Journal

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“…Relying on a spillover effect of green knowledge, environmental protection resources sharing, and similar effects, industrial agglomeration can accelerate environmental innovation, increase energy utilization efficiency, and thus promote pollution emission reduction. By constructing a spatial economic growth model, Zeng and Zhao (2009) claim that industrial agglomeration will mitigate the "pollution haven" effect [52]. Enrenfeld (2003) reports that, in the process of industrial agglomeration, enterprises present a symbiotic state due to the presence of material exchange, and that based on this, they can realize the recycling of material resources and thus reduce pollution emission [53].…”

Section: Introductionmentioning

confidence: 99%

“…In different stages of economic development, the relationship between industrial agglomeration and environmental pollution will vary (Zhang et al, 2015) [57]. On the other hand, many intermediate variables exist, which affect the relationship between industrial agglomeration and environmental pollution, such as size of the city, its marketization level, the degree of industrial agglomeration (He et al, 2014), industrial structure, and technological innovation (Zeng et al, 2009) [52,58].…”

Section: Introductionmentioning

confidence: 99%

Diversified Agglomeration, Specialized Agglomeration, and Emission Reduction Effect—A Nonlinear Test Based on Chinese City Data

2018

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Industrialization and urbanization has rapidly advanced in China. Therefore, clarifying the relationship between industrial agglomeration and environmental pollution resolves questions if intensive or dispersed development should be adopted for the future Chinese industry or not. By distinguishing between specialized and diversified agglomeration, this paper adopts the threshold regression method to investigate the differentiated influence of industrial agglomeration stages on pollution emission reduction. This was based on panel data from 2003 to 2016 on 285 prefecture-level cities in China. The result indicates that moderate degrees of industrial agglomeration and suitable agglomeration modes are conducive for the reduction of pollution emission. From a perspective of environmental protection, the development of diversified agglomeration is superior to that of specialized agglomeration. Specifically, a "U-shaped" relationship was found between specialized agglomeration and environmental pollution, suggesting that the former first mitigated and then worsened environmental pollution. This staged evolution of diversified agglomeration exerts a more-complex influence on environmental pollution. The following policy implications have been proposed: The currently implemented industrial growth pole strategy in China should fully utilize the "self-purification" effect of agglomeration to achieve energy conservation and emission reduction. Furthermore, differentiated agglomeration policies should be formulated in response to various growth poles according to different stages of industrial agglomeration. In addition, efforts should be made towards creating an interactive early warning mechanism for the spatial distribution of both economic activities and pollution.

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“…In particular, the agglomeration of industries with pollution characteristics in ICA is focused in this paper, where the air pollution, solid waste pollution, soil pollution, degradation of ecosystem and other urban environmental problems are apparent. In practice, the problems with ICA have affected the stability of ecological environmental system at different spatial scales and become the restrictive condition of urban and regional development, (Ren, Yu, & Wang, 2009;Zeng & Zhao, 2009;Liu, Dong, & Li, 2011;Ma, Jin, & Liu, 2012). According to Gowd, Reddy, and Govil (2010), the main reason of heavy metal pollution of soil in Jajmau and Unnao in India is the waste discharged from 450 leather manufacturers.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Study on Environmental Efficiency Assessment in Urban Industrial Concentration Areas

Maocheng

Gao

Yuan

2017

IRSPSD International

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Abstract:Many urban industrial concentration areas are becoming mixtures of intensive industrial and residential land use. While they play important roles in urban economy and employment, the energy consumption and pollution discharge in the process of industrial production bring mang negative effects on surrounding people and environments. In this paper, a tool is proposed to evaluate the environmental efficiency (EE) of the industrial concentration areas in order to coordinate the functioning of economic activities and environmental protection. Based upon discussion on the principal and significance of EE assessment in urban industrial concentration areas, an empirical study is conducted in Fengtai district, Beijing, to elaborate the idea from three aspects: socio-economic contribution, environmental load, and environmental risk. The study area was divided into 1379 grids of 500 m*500 m as the basic spatial unit while the spatial size effect and its rationality of the environmental functions have been testified. As the result, it turned out that the amount of the low EE grids account for 71.15% of the total districts while the rather high environmental load grids 20.18%. In the meantime, we found out that the area of low EE value grids have the tendency to aggregate towards the central urban areas, along urban express ring roads and around wholesale markets. These results shed light to implementing the refined environmental spatial management and control.

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Pollution havens and industrial agglomeration

Cited by 303 publications

References 30 publications

The Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry

The Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry

Diversified Agglomeration, Specialized Agglomeration, and Emission Reduction Effect—A Nonlinear Test Based on Chinese City Data

An Empirical Study on Environmental Efficiency Assessment in Urban Industrial Concentration Areas

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