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Does Environmental regulation cause pollution to transfer nearby?——Evidence from Chinese cities
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TitleDoes Environmental regulation cause pollution to transfer nearby?——Evidence from Chinese cities  
AuthorShen Kunrong, Jin Gang and Fang Xian  
OrganizationSchool of Economics,Nanjing University;.School of Economics,Fudan University;; 
Key WordsEnvironmental regulation; Pollution nearby transferring; Polluted industrial structure; Spatial lag of X model 
AbstractPollution transferring nearby not only destroys the scale effect of pollution control, but also fails to fundamentally avoid the problem of concentrated emissions, will lead to greatly reduced effectiveness of environmental governance. Based on the spatial lag of X model (SLX), this paper firstly matches the data from urban yearbook, the public environmental research center and the industrial enterprise database, and uses the instrumental variable regression (2SLS) to analyze the causal relationship between neighboring environmental regulation and local pollution discharge. This paper finds that there is pollution transferring nearby caused by environmental regulations, and the conclusion is still valid after considering a series of robustness tests and placebo tests. Further discussion reveals that: (1) Nearby transferring effect of pollution caused by environmental regulation became the biggest in 150km, that is, pollution usually transfers to the surrounding cities. (2) With the passage of time, nearby transferring effect of pollution show the more obvious feature of nearby transferring. (3) Environmental regulation not only enhances the industrial scale of cities which absorb pollution, in a worse case, environmental regulation deepens the degree of pollution of the industrial structure. (4) Exit barriers of the polluted areas can help to relieve nearby transferring effect of pollution, but the state-owned nature of the enterprises cannot produce obvious neutralization effect. The conclusion is that the current environmental regulation policies are not conducive to environmental governance because that local government aiming to realize the local short-term interests, the consensus should be reached on the common goals of environmental governance in order to solve the pollution. 
Serial NumberWP1207 
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