How does heterogeneous environmental regulation affect net carbon emissions: Spatial and threshold analysis for China

Area of Science:

• Environmental Science
• Economics
• Policy Studies

Background:

• China's stringent air pollutant reduction policies may also impact carbon emissions due to shared sources.
• Understanding the complex relationship between environmental regulations and carbon reduction is crucial for sustainable development.

Purpose of the Study:

• To investigate the effects of different environmental regulations on carbon emissions reduction in China.
• To analyze the spatial distribution and characteristics of China's net carbon emissions.

Main Methods:

• Construction of a spatial Durbin model and a panel threshold model.
• Utilized provincial panel data for China spanning from 2003 to 2019.

Main Results:

• Net carbon emissions in China exhibit a decreasing trend from east to west with significant spatial agglomeration.
• Both formal and informal environmental regulations demonstrate an inverted U-shaped relationship with net carbon emissions.
• Observed 'green paradox' and 'reverse emission reduction' effects at different regulatory stages.

Conclusions:

• Environmental regulations' carbon reduction efficacy is contingent on the stage of implementation and regional technological innovation.
• Findings offer theoretical guidance for optimizing environmental regulation policies in China.