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The optimal environmental regulation policy combination for high-quality economic development based on spatial Durbin and threshold regression models

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Abstract

It is essential to explore the optimal environmental regulation policy combination for high-quality economic development due to the mutual constraints and confrontation between environmental regulation policies. Based on provincial panel data of China from 2000 to 2019, this study uses the spatial Durbin model to examine the synergy effect of different environmental regulation policy combinations on high-quality economic development from the dual perspective of local effects and spillover effect of environmental regulation, respectively. Furthermore, it explores the threshold effect of environmental regulation policy synergy on high-quality economic development through technological innovation at provincial level as well as in three major regions of China using the threshold regression model. The results indicate that environmental regulation policy synergy has a spatial spillover effect on high-quality economic development, and there is a positive U-shaped relationship with them no matter which policy combination. However, there are significant differences in the local effects and spillover effects of environmental regulation policy synergy under different policy combinations. Moreover, there is a double threshold for environmental regulation policy synergy effect on high-quality economic development except in central China, which policy combinations of 13 and 23 have a single threshold effect, while the other policy combinations have no threshold effect. Finally, the optimal environmental regulation policy combination for high-quality economic development is given through comparative analysis. In response to the above conclusions, this paper puts forward the targeted policy implications.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Abbreviations

HED:

High-quality economic development

ERS:

Environmental regulation policy synergy

SDM:

Spatial Durbin model

SLM:

Spatial lag model

STR:

Single threshold regression

PTR:

Panel threshold regression

DTR:

Double threshold regression

MTR:

Multiple threshold regression

ERSD:

Degree of environmental regulation policy synergy

TEI:

Technological innovation

POP:

Dependency ratio

IS:

Industrial structure

K:

Fixed investments

FDI:

Foreign direct investment

SEM:

Spatial error model

EDU:

Education level

GS:

Government size

L:

Labor force

UR:

Urbanization level

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Acknowledgements

This study was supported by the National Natural Science Foundation of China [72071110], and the China Scholarship Council Fund [202106830096].

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Authors and Affiliations

  1. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211106, China

    Weixue Lu, Hecheng Wu & Liwen Wang

  2. Schulich School of Engineering, University of Calgary, Calgary, Alberta, Canada

    Weixue Lu

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  1. Weixue Lu
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  2. Hecheng Wu
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  3. Liwen Wang
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WL: Conceptualization, Data curation, Formal analysis, Methodology, Software, Writing-Original draft preparation, Writing-Reviewing and Editing. HW: Methodology, Project administration, Supervision. LW: Conceptualization, Data curation, Validation.

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Correspondence to Hecheng Wu.

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Lu, W., Wu, H. & Wang, L. The optimal environmental regulation policy combination for high-quality economic development based on spatial Durbin and threshold regression models. Environ Dev Sustain 25, 7161–7187 (2023). https://doi.org/10.1007/s10668-022-02372-w

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