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Sustainability 2016, 8(5), 467; doi:10.3390/su8050467

Environmental Regulation, Economic Network and Sustainable Growth of Urban Agglomerations in China

1
School of Economics, Jinan University, Guangzhou 510632, China
2
Department of Geography, Kent State University, Kent, OH 44242, USA
*
Author to whom correspondence should be addressed.
Academic Editor: Giuseppe Ioppolo
Received: 25 December 2015 / Revised: 4 May 2016 / Accepted: 5 May 2016 / Published: 11 May 2016
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Abstract

In this paper, we examine the influence of environmental regulation on sustainable economic growth from both theoretical and empirical perspectives. Our research is twofold. First, we apply a modified NEG (New Economic Geography) model to analyze how environmental regulation influences firms’ location choices and cities’ sustainable economic growth. Second, we test a spatial econometric model employing panel data of the three largest urban agglomerations in China from 2003 to 2013 to study the relationship between environmental regulation and sustainable economic growth as well as the spillover channels of economic activities. The results reveal a remarkable negative effect of environmental regulation on economic growth. In addition, we find no sufficient evidence to prove the existence of long-term effects of environmental regulation on economic growth in the three urban agglomerations. Furthermore, using different weight matrices to illustrate the different economic networks of the urban agglomeration, we validate the difference in spillover mechanisms across these three urban agglomerations. Specifically, the disparity in environmental regulation acts as a spillover channel for the Yangtze River Delta and the Pearl River Delta, while it is not significant for Jing-Jin-Ji. View Full-Text
Keywords: environmental regulation; urban agglomeration; economic growth; spillover channels; economic network environmental regulation; urban agglomeration; economic growth; spillover channels; economic network
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MDPI and ACS Style

Chong, Z.; Qin, C.; Ye, X. Environmental Regulation, Economic Network and Sustainable Growth of Urban Agglomerations in China. Sustainability 2016, 8, 467.

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