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The internal and external effects of air pollution on innovation in China

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Abstract

China is now the world’s largest energy consumer, but severe air pollution problems have brought greater pressure to the production and development of its domestic economy. As an unavoidable result of air pollution, PM2.5 emissions are increasing. Previous literature has focused more on the impact of PM2.5 on the micro-level such as resident health and company location, yet macro-pattern studies between PM2.5 and innovation are inadequate. To bridge this gap, our research uses a spatial dynamic panel data model to systematically investigate the internal and external effects of PM2.5 concentration on innovation in China during the period 2001–2016. After forming a dataset of real-time PM2.5 concentration from satellite detection and using an innovation index instead of patents, we find a stronger spatial linkage between PM2.5 concentration and innovation. Thus, PM2.5 inhibits regional innovation significantly, and this result still exists after using the air mobility index as an instrument variable to alleviate endogenous problems. Lastly, PM2.5 concentration in neighboring regions also impedes local innovation considerably, indicating a spatial ripple effect of PM2.5.

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Acknowledgments

The authors are grateful to the comments and suggestions from the Editor and two anonymous referees.

Funding

The research has been financially supported by the Project of the National Natural Science Youth Foundation of China (Grant No. 72003055), Project of Humanities and Social Science Research Youth Fund of the Ministry of Education (Grant No. 20YJC790195), Special Project of Philosophy and Social Sciences of Anhui Province (Grant No. AHSKC2019D05), the Fundamental Research Funds for the Central Universities (Grant No. JS2020HGXJ0035, No. JZ2020HGQA0179, No. JZ2018HGBZ0185, No. JS2019HGXJ0023), and Natural Science Foundation of Jiangxi Province of China (Grant No. 20202BAB201006).

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Authors and Affiliations

  1. School of Economics, Hefei University of Technology, Hefei, China

    Chen Zhu

  2. Research Center of the Central China for Economic and Social Development, Nanchang University, Nanchang, China

    Chien-Chiang Lee

  3. School of Economics and Management, Nanchang University, Nanchang, Jiangxi, China

    Chien-Chiang Lee

Authors
  1. Chen Zhu
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  2. Chien-Chiang Lee
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Contributions

All authors contributed equally to this study and share first authorship. All authors provided critical feedback and helped shape the research, analysis, and manuscript. Chen Zhu is responsible for conceptualization, investigation, and writing of original draft and analysis; Chien-Chiang Lee is responsible for the supervision, visualization, and writing—reviewing and editing

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Correspondence to Chien-Chiang Lee.

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Zhu, C., Lee, CC. The internal and external effects of air pollution on innovation in China. Environ Sci Pollut Res 28, 9462–9474 (2021). https://doi.org/10.1007/s11356-020-11439-y

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  • DOI: https://doi.org/10.1007/s11356-020-11439-y

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