Aggregate Effect and Structural Effect of Environmental Policy Differences in China

Conference paper
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 185)

Abstract

In this paper, we set a two region two sector two factor model under a new economic geography (NEG) framework, and in this model, the manufacturing sector is divided into two industries, high pollution and low pollution industries.We discussed effects of environmental policy differences on the regional distribution of the manufacturing sector and structural change of industries in each region. We found that on one hand, the structural changes of industries are very sensitive to the environmental policy differences, while on the other hand, the regional distribution of the manufacturing sector is not as sensitive, which provided a reasonable explanation for China’s “Pollution moving westward, production moving eastward” phenomenon. And we also found that it is improper to appeal manufacturing firms by relaxing the environmental policy, even regardless of the externality arising from environmental pollution. It not only attracts the “dirty industry”, but also repels the “clean industry”, and almost has no effect on share of manufacturing output.

Keywords

Environmental policy Industry distribution Pollution moving westward 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Baldwin R, Forslid R, Martin P et al. (2003) Economic geography and public policy. 1st edn, Princeton University Press, Princeton.Google Scholar
  2. 2.
    Chamberlin EH (1993) The theory of monopolistic competition. 1st edn, Harvard University Press, Boston.Google Scholar
  3. 3.
    Li J (2010) A chance maximization portfolio selection model in fuzzy random environment. In: Proceedings of the Fourth International Conference on Management Science and Engineering Management.Google Scholar
  4. 4.
    Fujita M, Krugman P, Mori T (1999) On the evolution of hierarchical urban systems. European Economic Review 43:209–251.Google Scholar
  5. 5.
    Fujita M, Krugman P, Venables A (1999) The spatial economy: Cities, regions, and international trade. 1st edn, MIT Press, Boston.Google Scholar
  6. 6.
    Krugman P (1980) Scale economies, product differentiation, and the pattern of trade. American Economic Review 70:950–959.Google Scholar
  7. 7.
    Martin P, Rogers CA (1995) Industrial location and public infrastructure. Journal of International Economics 39:335–351.Google Scholar
  8. 8.
    Takatsuka H, Zeng D (2009) Dispersion forms: An interaction of market access, competition, and urban costs. Journal of Regional Science 49:177–204.Google Scholar
  9. 9.
    Walter I (1973) The pollution content of American trade. Western Economic Journal 11:61–70.Google Scholar
  10. 10.
    Zeng D (2008) New economic geography with heterogeneous preferences: An explanation of segregation. Journal of Urban Economics 63:306–324.Google Scholar
  11. 11.
    Zeng D (2006) Redispersion is different from dispersion: Spatial economy of multiple industries. Annals of Regional Science 40:229–247.Google Scholar
  12. 12.
    Zhang L, Yuan Y (2010) A POS-based algorithm for airline crew scheduling problem under uncertainty environment. In: Proceedings of the Fourth International Conference on Management Science and Engineering Management.Google Scholar
  13. 13.
    Peng H, Ren R (2003) The environmental policy tool and corperate competitive advantage. China Industrial Economy 89–95 (In Chinses).Google Scholar
  14. 14.
    Yang Y (2008) The comparative study to the eastern and western regions transfer of pollutionintensive industries in China. Ecological Economy 133–147 (In Chinses).Google Scholar
  15. 15.
    Luo H, Wang J, Cao D (2000) Environmental challenge and countermeasures for Great Western Region Development in China. Reasearch of Environmental Sciences 110–127 (In Chinses) 86 Aggregate Effect and Structural Effect of Environmental Policy 1007.Google Scholar
  16. 16.
    Su Y (2005) Very bad and very good-the disadvantages and advantages fo western development of high energy consumption high pollution industry. Northern Economy 237-251 (In Chinses).Google Scholar
  17. 17.
    Tang Y, Xiong X,Wei Y (2009) A study on operational stratey and innovation of implementation model for environment protection in business. In: Proceedings of the Third International Conference on Management Science and Engineering Management.Google Scholar

Copyright information

© Springer-Verlag London 2013

Authors and Affiliations

  1. 1.College of EconomicsZhejiang UniversityHangzhouPeople’s Republic of China

Personalised recommendations