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Related Experiment Video

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Assessing the Particulate Matter Removal Abilities of Tree Leaves
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How does financial development alleviate pollutant emissions in China? A spatial regression analysis.

Xing Wang1,2, Dequn Zhou3,4, Şahin Telli3

  • 1College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211106, China. ilepay@126.com.

Environmental Science and Pollution Research International
|March 23, 2022
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Summary

Financial development impacts pollutant emissions differently across regions, with sulfur dioxide showing strong spillover effects and solid waste showing weak ones. Both emissions exhibit a U-shaped relationship with financial development.

Keywords:
Financial developmentPollutant emissionsSpatial autocorrelationSpatial regression model

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Area of Science:

  • Environmental Economics
  • Regional Economics
  • Sustainable Development

Background:

  • Financial development significantly impacts the real economy and exhibits nonlinear characteristics.
  • Understanding the environmental effects of financial development is crucial for sustainable development policies.
  • Regional disparities in financial development necessitate localized environmental assessments.

Purpose of the Study:

  • To investigate the nonlinear relationship between financial development and pollutant emissions (SO2 and SW) in China.
  • To analyze the spatial transmission mechanisms of financial development's impact on pollutant emissions.
  • To consider the varying stages of financial development across different regions.

Main Methods:

  • Quantitative analysis of industrial sulfur dioxide (SO2) and solid waste (SW) emissions in China.
  • Theoretical analysis of spatial transmission mechanisms.
  • Examination of nonlinear relationships and spatial spillover effects.

Main Results:

  • A positive spatial spillover effect of pollutant emissions was observed across regions.
  • Financial development reduced SO2 emissions locally but increased them in surrounding regions (strong spillover).
  • Financial development reduced SW emissions locally with no significant impact on surrounding regions (weak spillover).
  • A U-shaped relationship was found between financial development and both SO2 and SW emissions.
  • An inverted U-shaped relationship was observed between economic growth and pollutant emissions.

Conclusions:

  • Financial development has complex, spatially dependent effects on pollutant emissions.
  • Policy interventions should account for spatial spillover effects and regional financial development stages.
  • The findings support the design of targeted environmental policies to promote sustainable financial development.