Spatial green growth in China: Exploring the positive role of investment in the treatment of industrial pollution

Abstract

The industrial sector of China is critical to the country's economic growth. On the other side, industrialization has resulted in a high rate of emissions, pushing China to spend extensively on industrial pollution remediation. As a result, this study looks at the relationship between investment completed in the treatment of industrial pollution (ICITP) and economic development. A time-fixed effect spatial error model was used to analyse regional data from China from 1999 to 2018. The data reveal a positive association between ICTIP and regional economic growth, both in the short and long term. Furthermore, the negative consequences of urban wages and foreign investment on ICTIP are having the reverse effect on regional green development, necessitating ecologically friendly actions to mitigate the negative environmental effects of both.JEL Codes: E62, Q56, R23, C21.