How Industrial Transfer Processes Impact on Haze Pollution in China: An Analysis from the Perspective of Spatial Effects

Abstract

Industrial transfer from advanced regions is a good way to foment economic development in less advanced regions. Nevertheless, does industrial transfer intensify or alleviate haze pollution? To answer this question, this study employed the shift-share method and spatial panel models to explore how industrial transfer processes impact haze pollution in the case of China. The main results are as follows: (1) With the advances made in industrial transfer and upgrading, China has entered the stage of decoupling between the economic development level and haze pollution. (2) Industrial transfer could effectively alleviate the degree of haze pollution in the transferred-out areas, but it would have a significant accelerating effect on haze pollution in the transferred-in areas. Compared with non-polluting industries, polluting industries would be responsible for a large deterioration in the local air quality. (3) Environmental regulations, as the main factor mitigating environmental pollution, do not achieve the desired effects and significantly reduce the regional pollution levels that led to haze. Therefore, the effects of industrial transfer should also be comprehensively considered in government of undertake regions. There would likely be great economic costs if the old path of "pollution first and treatment later" is followed. This study not only advances the existing literature, but also is of considerable interest to policy makers.