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Grey-edge Effect of Environmental Regulation

【Authors】
XU Zhiwei & LIU Chenshi
【WorkUnit】
Tianjin University of Finance and Economics, 300222.
【Abstract】

Under the center-periphery economic spatial structure framework,the paper deduces the influence of environmental regulation intensity gradation among cities on the location selection strategy of polluting firms. Meanwhile,based on the specific geographic location information of individual firms in Beijing-Tianjin-Hebei region from 2005 to 2012,the paper also makes an empirical investigation into the spatial distribution characteristics of SO2 emissions by taking the Beijing administrative boundary as a cutoff. The theoretical deduction result shows that,under the combined effect of centrifugal force from environmental regulation and centripetal force from cost saving or market demand potential,the polluting firms will eventually agglomerate at the environmental regulation gradient boundary to set up factories,thus forming the pollution grey-edge effect around the central city. Through the regression study by more than 18,000 effective observation values from more than 6,000 polluting firms,the paper finds that there is a high-emission zone of pollutants within 50 km around Beijing's administrative boundary. A series of tests,such as changing the estimated parameters,replacing the surrogate variables and deleting special samples,have proved the grey-edge effect to be robust. The grey-edge effect is the most obvious in the eastern part of Beijing,and the agglomeration of non-state-owned polluting firms is the main reason for the formation of high-emission zones. During the Beijing 2008 Olympic Games and the period thereafter,the grey-edge effect temporarily disappeared with the shutdown of polluting firms in peripheral cities. But since 2010,the pollution grey-edge around Beijing has reappeared again. This paper incorporates environmental regulation factors into the theoretical analysis framework of location selection,which provides a new theoretical explanation and empirical basis for the necessity of joint prevention between central and peripheral cities.


JEL:O13,Q56 

【KeyWords】
Grey-edge Effect,Central and Peripheral Cities,Environmental Regulation Intensity Gradation