Who takes the lead: Synergistic emission reduction effects of proactive government and efficient market in atmospheric pollution mitigation

Pengpeng Tian¹, Zichun Pan¹, Xuemei Zeng¹

¹College of Economics and Management, Northwest A&F University, Yangling, 712100, Shaanxi, China.

Journal of Environmental Management

|October 29, 2024

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View abstract on PubMed

Summary

Government and market forces synergistically reduce air pollution, with government regulation playing a dominant role and market efficiency a supportive one. Public participation further enhances these environmental protection efforts.

Area of Science:

Environmental Science
Environmental Economics
Public Policy

Background:

Existing environmental protection literature often analyzes government and market forces separately.
A unified framework is needed to understand their combined impact on environmental outcomes.
This study addresses the gap by integrating government regulation and market efficiency.

Purpose of the Study:

To investigate the synergistic emission reduction effects of government and market forces on air pollution.
To examine the dominant and supportive roles within this synergy.
To explore how collaboration and public participation influence environmental protection effectiveness.

Main Methods:

Empirical analysis using data from 272 prefectural-level cities in China (2003-2019).
Defined government force as environmental regulation and market force as allocation efficiency.
Assessed synergistic effects, heterogeneous impacts, threshold effects, and the role of public participation.

Main Results:

Both government intervention and market efficiency significantly reduce air pollution.
Their combination yields synergistic emission reduction effects, with government dominance.
Collaboration mitigates policy uncertainty and corruption; public participation enhances synergy.

Conclusions:

Integrated government and market approaches are more effective for air pollution control than isolated efforts.
Synergistic effects demonstrate a threshold dependent on the strength of both forces.
Public participation is crucial for maximizing the benefits of government-market cooperation in environmental protection.

Keywords:

Atmospheric pollution Efficient market Emission reduction Proactive government Synergistic effects

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