How does heterogeneous environmental regulation affect net carbon emissions: Spatial and threshold analysis for China

The Chinese government has made great efforts in air pollutant reduction and carried out strict regulation policies. Since numerous air pollutants and CO2 tend to have the same root, source, and process, recent studies argue that environmental regulation may also contribute to reducing carbon emissions. To investigate how various types of environmental regulations affect carbon emissions reduction, this paper constructs the spatial Durbin model and panel threshold model based on provincial panel data in China during 2003-2019. The main findings are as follows: First, China's net carbon emissions show a decreasing trend from east to west, displaying significant spatial agglomeration characteristics. Then, formal and informal environmental regulations have inverted U-shaped impacts on net carbon emissions. The green paradox and reverse emission reduction effects come into play at different stages. Finally, the threshold model reveals that with the improvement of regional technological innovation levels, the carbon-reducing effect of environmental regulation will increasingly come to the fore. These research findings are conducive to providing theoretical guidance for government to formulate and implement environmental regulation policies rationally.

Automated summary

The Chinese government has made great efforts and implemented strict regulation policies to reduce air pollutants. Recent studies suggest that these environmental regulations may also contribute to reducing carbon emissions. This paper uses the spatial Durbin model and panel threshold model to investigate the effects of different environmental regulations on carbon emissions reduction based on provincial panel data in China. The findings show that China's net carbon emissions display spatial agglomeration characteristics and that formal and informal environmental regulations have inverted U-shaped impacts on net carbon emissions. The study also reveals that the carbon-reducing effect of environmental regulation becomes more prominent with the improvement of regional technological innovation levels.