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Environmental Regulation Competition and Carbon Emissions.

Lizhi Cui1,2, Yining Ding1, Xiangqian Li1

  • 1School of Business, Anhui University of Technology, Ma'anshan 243032, China.

International Journal of Environmental Research and Public Health
|January 8, 2023
PubMed
Summary
This summary is machine-generated.

Environmental regulatory competition drives a "race to the top" among local governments, significantly reducing carbon emissions. This competition influences emissions through political assessments and industrial/technological improvements.

Keywords:
carbon emissionsenvironmental regulatory competitionevolutionary gamespatial Durbin model

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Area of Science:

  • Environmental Economics
  • Public Policy
  • Game Theory

Background:

  • Local governments engage in environmental regulatory competition, influenced by theories of environmental federalism and inter-local competition.
  • Understanding this competition is crucial for effective carbon emission reduction governance.

Purpose of the Study:

  • To analyze the strategic interactions in environmental regulatory competition.
  • To determine the impact of this competition on carbon emissions.
  • To explore the mechanisms through which environmental regulation competition affects carbon emissions.

Main Methods:

  • Constructed a three-way evolutionary game model to explore strategic interactions.
  • Applied the spatial Durbin model to test specific forms of competition and analyze effects.
  • Examined the influence of political performance assessment, industrial structure, and technological capabilities.

Main Results:

  • Identified strategic equilibria: "race to the bottom," "race to the top," and "differentiation of competition."
  • Empirical evidence indicates a "race to the top" in environmental regulation competition post-2012.
  • Increased environmental regulation intensity effectively inhibits carbon emissions, with the strongest effect observed in central regions.

Conclusions:

  • Environmental regulatory competition, particularly a "race to the top," positively impacts carbon emission reduction.
  • Mechanisms include political performance incentives, industrial upgrading, and enhanced low-carbon technology.
  • Central government should balance interests, optimize performance assessments, and consider regional disparities for effective carbon governance.