Moving with the wind : environmental regulation avoidance and the adjustment of firms' location

Guoqin Pan, Qun Bao, Rui Huang

Polluting firms typically relocate to avoid stringent environmental regulations. Based on China's Two Control Zones (TCZ) policy, we examine the impact of environmental regulation on firms' location decisions. The results show that in the upwind TCZ near interprovincial areas, the distance of polluting firms to the border is significantly reduced after environmental regulation is tightened. This finding provides new evidence for the need to strengthen regional joint prevention and control to prevent trans-regional pollution transfer.

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Year of publication:	2023
Authors:	Pan, Guoqin ; Bao, Qun ; Huang, Rui
Published in:	China economic quarterly international : CEQI. - Amsterdam : Elsevier, ISSN 2666-9331, ZDB-ID 3059077-2. - Vol. 3.2023, 4, p. 238-247
Subject:	Environmental regulation \| Firm location \| Pollution free-riding \| Betriebliche Standortwahl \| Firm location choice \| Theorie \| Theory \| Umweltpolitik \| Environmental policy \| Umweltstandard \| Environmental standard \| Betrieblicher Standort \| Umweltbelastung \| Pollution

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1016/j.ceqi.2023.11.001 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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