Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-27T09:14:14.844Z Has data issue: false hasContentIssue false
  • English
  • Français

Evidence on the interjurisdictional competition for polluted industries within China

Published online by Cambridge University Press:  26 February 2010

HIROYUKI TAGUCHI  and
HARUTAKA MUROFUSHI
HIROYUKI TAGUCHI
Affiliation:
Policy Research Institute, Ministry of Finance, Government of Japan, 3-1-1 Kasumigaseki Chiyoda-ku, Tokyo 100-8940, Japan. Tel: 813-3597-0464. Fax: 813-5251-2114. Email: [email protected]
HARUTAKA MUROFUSHI
Affiliation:
Economic and Social Research Institute, Cabinet Office, Government of Japan, Japan. Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This study examines, with a focus on regional environmental states in China, whether regional latecomers suffer the domestically created ‘pollution haven’ effect through the interjurisdictional competition for polluted industries within China, or enjoy the spillover effect of nationwide progress in environmental management and technology, using the analytical framework of the environmental Kuznets curve. The study found that the regional latecomer's advantage was verified in the case of wastewater, while its disadvantage was identified in waste gas and solid waste. We speculate that the contrasting result on regional latecomer's effects between wastewater, waste gas, and solid waste comes from the difference in policy performances: the well-designed water pollution control may have regional latecomer's enjoy the spillover effect of nationwide progress, while the ineffective control of air and solid waste pollution may cause a ‘pollution haven’ effect through the interjurisdictional competition for polluted industries on regional latecomers.

Type
Research Article
Information
Environment and Development Economics , Volume 15 , Issue 3 , June 2010 , pp. 363 - 378
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Auffhammer, M. and Carson, R.T. (2008), ‘Forecasting the path of China's CO2 emissions using province-level information’, Journal of Environmental Economics and Management 55: 229–247.CrossRefGoogle Scholar
Borghesi, S. (1999), ‘The Environmental Kuznets Curve: a survey of the literature’, FEEM (Fondazione ENi Enrico Mattei) Working Paper No. 85–99.Google Scholar
Dasgupta, S., Laplante, B., Wang, H., and Wheeler, D. (2002), ‘Confronting the Environmental Kuznets Curve’, Journal of Economic Perspectives 16 (1): 147–168.CrossRefGoogle Scholar
Dean, J.M. and Lovely, M.E. (2008), ‘Trade growth, production fragmentation, and China's environment’, NBER Working Paper No. 13860.Google Scholar
De Bruyn, S.M., van den Bergh, J.C.J.M., and Opschoor, J.B. (1998), ‘Economic growth and emissions: reconsidering the empirical basis of Environmental Kuznets Curves, Ecological Economics 25 (2):161–175.CrossRefGoogle Scholar
Grossman, G. and Krueger, A. (1991), ‘Environmental impacts of the North American Free Trade Agreement’, NBER Working Paper No. 3914.Google Scholar
Grossman, G. and Krueger, A. (1993), ‘Environmental impacts of the North American Free Trade Agreement’, in Garber, P. (ed.), The U.S.-Mexico Free Trade Agreement, Cambridge: MIT Press, pp. 13–56.CrossRefGoogle Scholar
Grossman, G. and Krueger, A. (1995), ‘Economic growth and the environment’, Quarterly Journal of Economics 112: 353–378.CrossRefGoogle Scholar
Irie, Y., Kobayashi, Y., and Morita, T. (2000), ‘Policy Analysis on Alternative Development Paths Based on the Environmental Kuznets Curve – Empirical Proof Using Time Serial Data on SO2 and Simulation Analysis’, Breakaway session at the 2000 meeting of Society for Environmental Economics and Policy Studies, 30 September, Tsukuba International Conference Room, Japan.Google Scholar
Liu, X.Z., Heilig, G.K., Chen, J.M., and Heino, M. (2007), ‘Interactions between economic growth and environmental quality in Shenzhen, China's first special economic zone’, Ecological Economics 62: 559–570.CrossRefGoogle Scholar
Lopez, R. (1994), ‘The environment as a factor of production: the effects of economic growth and trade liberalization’, Journal of Environmental Economics and Management 27 (2): 163–184.CrossRefGoogle Scholar
MacBean, A. (2007), ‘China's environment: problems and policies’, The World Economy 30 (2): 195–362.CrossRefGoogle Scholar
Martin, P. and Wheeler, D. (1992), ‘Prices, policies, and the international diffusion of clean technology: the case of wood pulp production’, in Low, P. (ed.), International Trade and the Environment, Washington, D.C.: World Bank, pp. 197–224.Google Scholar
Matsuoka, S. (2000), ‘Country Report’, Viewpoint to East Asia (in Japanese) 11 (4): 106–155.Google Scholar
Matsuoka, S., Matsumoto, R., Kawauchi, I., and Iwase, M. (2000), ‘The capacity building of environmental management in East Asia’, Viewpoint to East Asia (in Japanese) 11 (4): 92–105.Google Scholar
Nahman, A. and Antrobus, G. (2005), ‘The Environmental Kuznets Curve: a literature survey’, South African Journal of Economics 73 (1):105–120.CrossRefGoogle Scholar
Overseas Environmental Cooperation Center (OECC) (2001), ‘Cases of Japan – China Environmental Cooperation’.Google Scholar
Panayotou, T. (1997), ‘Demystifying the Environmental Kuznets Curve: turning a black box into a policy tool’, Environment and Development Economics 2 (4): 465–484.CrossRefGoogle Scholar
Rothman, D.S. (1998), ‘Environmental Kuznets Curves – real progress or passing the buck? A case for consumption-based approaches’, Ecological Economics 25: 177–194.CrossRefGoogle Scholar
Selden, T.M. and Song, D. (1994), ‘Environmental quality and development: is there a Kuznets Curve for air pollution emissions?’, Journal of Environmental Economics and Management 27: 147–162.CrossRefGoogle Scholar
Shafik, N. (1994), ‘Economic development and environmental quality: an econometric analysis’, Oxford Economic Papers 46 (Supplement): 757–773.CrossRefGoogle Scholar
Shen, J.Y. (2006), ‘A simultaneous estimation of Environmental Kuznets Curve: evidence from China’, China Economic Review 17 (4): 383–394.CrossRefGoogle Scholar
Shen, J.Y. and Hashimoto, Y. (2004), ‘Environmental Kuznets Curve on country level: evidence from China’, Discussion Papers in Economics and Business 04–09, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka.Google Scholar
Song, T., Zheng, T., and Tong, L. (2008), ‘An empirical test of the Environmental Kuznets Curve in China: a panel cointegration approach’, China Economic Review 19: 381–392.CrossRefGoogle Scholar
Stokey, N. L. (1998), ‘Are there limits to growth?’, International Economic Review 39: 1–31.CrossRefGoogle Scholar
Suri, V. and Chapman, D. (1998), ‘Economic growth, trade, and energy: implications for the Environmental Kuznets Curve’, Ecological Economics 25: 195–205.CrossRefGoogle Scholar
Wang, H. and Wheeler, D. (1996), ‘Pricing industrial pollution in China: an econometric analysis of the levy system’, Policy Research Working Paper No. 1644, World Bank, Policy Research Department, Washington, D.C.CrossRefGoogle Scholar
World Bank (1992), Development and the Environment, World Development Report, Washington, D.C.: Oxford University Press.Google Scholar
World Bank (2001), CHINA – Air, Land, and Water: Environmental Priorities for a New Millennium, Washington, D.C.Google Scholar