ZHAO Xiaowei:Inter-local Government Strategies of Environmental Regulation Competition and Its Economic Growth Effect

Abstract  The paper uses panel data of prefecture-level (and above) cities from 2004 to 2009, identifies whether environmental regulation “Race to Bottom” was global and local problem, and its economic growth effect by using Spatial Panel Durbin Model. Main conclusions are as follows. Since 2003, the environmental regulation “Race to Bottom” strategy among local governments was not an overall issue, but a local issue. “Race to Bottom” strategy got support in central region in both the geographical-weight and the economic-weight matrixes, while other regions showed different types of competition. Meanwhile, the effects of government environmental regulation competition on economic growth are various in different regions, while the effects in eastern and northeastern regions are positive, that in central region is negative, and that in western region is not prominent. The study not only provides governments at all levels with improvement space in innovating environmental regulation mechanism, but also offers decision reference for improving differential mechanism in environmental policies.

Key words： Environmental Regulation    Race to Bottom Strategy    Economic Growth Effect    Spatial Panel Durbin Model

Source: Finance & Trade Economics , No.10, 2014