Does ecological economic zone policy affect pollutant emission: Evidence from a case study of Dongting Lake.

ABSTRACT

Environmental pollution affects human health, reduces work motivation, and addressing environmental pollution is a common challenge faced by the world. The Chinese government has recently implemented a new environmental policy - the national-level ecological economic zone - to develop a green economy and reduce environmental pollution. This study utilizes the difference-in-difference method to analyze the impact of the Dongting Lake ecological economic zone on environmental pollution. The results show that policy led to a 68 % reduction in sulfur dioxide emissions. This impact was more pronounced in economically developed areas, regions with a high concentration of foreign-invested, and areas with greater economic openness. Mechanism tests indicate that the policy reduces environmental pollution by promoting technological progress. Robustness checks show that the policy also resulted in a 37 % reduction in industrial wastewater emissions. The results offer new insights to advance the development of the ecological economic zone more effectively. The ecological economic zone should focus on enhancing technological advancement and green total factor productivity to amplify the policy's positive effects.