Quantifying the effect of administrative approval reforms on SO2 emissions: a quasi-experiment in Chinese cities.

The effects of the Administrative Examination and Approval System Reform on economic growth and entry of businesses have drawn much attention. However, few scholars pay attention to the impacts of this policy on SO2 emissions. Keeping in view the existing research gap, a spatial difference-in-difference (SDID) model is employed to assess the effects of the Administrative Examination and Approval System Reform on SO2 emissions in 297 Chinese cities during the period 1995-2020 from the perspective of spatial spillover effects. The results show that the establishment of Administrative Examination and Approval Center (AEAC) has significantly positive effects on the local SO2 emissions. The significant indirect (spatial spillover) effects are confirmed. That is, the establishment of AEAC of a given city has a significant positive impact on the SO2 emissions of neighboring cities. The findings are confirmed by several robustness tests. Our study findings have significant implications for the cross-border coordination of environmental policies that aim to improve the quality of the environment across borders.

Spatial Effects of Air Pollution on the Siting of Enterprises: Evidence from China.

The siting of enterprises is important for enterprises to formulate business objectives and business strategies, both of which are crucial to the development of enterprises in the future. Although there exists an irrefutable fact that the increasingly serious environmental problems are affecting the behaviors of enterprises, how air pollution affects the siting of enterprises has received little academic attention. Therefore, using the dataset of Chinese prefecture-level cities from 2014 to 2020, this paper employs the Spatial Durbin Model to investigate the direct and spatial spillover effects of air pollution on the site selection of enterprises. In addition, this paper also establishes a mediation effect model to explore the impact mechanism of air pollution on the site selection of enterprises. The empirical results show that air pollution exerts a negative impact on both the local and spatially related regions' enterprises' site selection, and the above conclusion is reinforced through a series of robustness checks. The heterogeneity analysis demonstrates that air pollution has a greater inhibitory effect on the siting of low-cleaning enterprises and small-scale enterprises for the local and adjacent regions. The mechanism analysis results indicate that air pollution inhibits the siting of enterprises by reducing the local labor endowment and market scale. Our study enriches the relevant theory of air pollution and enterprises' location nexus, and it also provides an empirical basis for the Chinese government to formulate policies related to air governance and the siting of enterprises.