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Research Article
Zhihui Yang
Anhui University of Finance and Economics
Corresponding Author
ORCiD: https://orcid.org/0000-0002-5086-7791
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While local protectionism and market segmentation owing to fiscal decentralization are not conducive to broad economic development, they may be rational choices on a local scale. Based on a spatial Durbin model, we analyzed the relationship between environmental regulations and market segmentation in China using interprovincial panel data for 2004–2018. The results indicated that the “beggar-thy-neighbor” phenomenon persists in China; environmental regulations have a U-shaped impact on market segmentation, i.e., in most regions, environmental regulations strongly promote local market integration. Regions with greater decentralization are better able to promote local market integration through environmental regulation, suggesting that local governments are better able to compensate for market failures when vested with greater power. Hence, we propose that the central government should improve performance evaluation indicators for local governments and grant them greater autonomy; additionally, local governments should increase the intensity of environmental regulations as appropriate, thereby promoting both environmental protection and the unification of domestic markets.
Keywords
environmental regulation, market segmentation, fiscal decentralization, spatial effect
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CURRENT STATUS: Under Review
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Posted 14 Jun, 2021
No community comments so far
Editorial decision: Major Revision
On 08 Jul, 2021
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Received 09 Jun, 2021
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This preprint is under consideration at Environmental Science and Pollution Research. A preprint is a preliminary version of a manuscript that has not completed peer review at a journal. Research Square does not conduct peer review prior to posting preprints. The posting of a preprint on this server should not be interpreted as an endorsement of its validity or suitability for dissemination as established information or for guiding clinical practice.
Learn more about In Review
Research Article
Zhihui Yang
Anhui University of Finance and Economics
Corresponding Author
ORCiD: https://orcid.org/0000-0002-5086-7791
Badges
Prescreen
This manuscript passed our Prescreen assessment
Complete author information
Appropriate declaration statements
Potential risks to human health
Prescreen
Peer Review Timeline
CURRENT STATUS: Under Review
Version 1
Posted 14 Jun, 2021
No community comments so far
Editorial decision: Major Revision
On 08 Jul, 2021
Reviews received
Received 09 Jun, 2021
Reviewers invited
Invitations sent on 09 Jun, 2021
Editor invited
On 03 Jun, 2021
Editor assigned
On 25 May, 2021
First submitted
On 21 May, 2021
Metrics
Comments: 0
PDF Downloads: ...
HTML Views: ...
License:
This work is licensed under a CC BY 4.0 License. Read Full License
While local protectionism and market segmentation owing to fiscal decentralization are not conducive to broad economic development, they may be rational choices on a local scale. Based on a spatial Durbin model, we analyzed the relationship between environmental regulations and market segmentation in China using interprovincial panel data for 2004–2018. The results indicated that the “beggar-thy-neighbor” phenomenon persists in China; environmental regulations have a U-shaped impact on market segmentation, i.e., in most regions, environmental regulations strongly promote local market integration. Regions with greater decentralization are better able to promote local market integration through environmental regulation, suggesting that local governments are better able to compensate for market failures when vested with greater power. Hence, we propose that the central government should improve performance evaluation indicators for local governments and grant them greater autonomy; additionally, local governments should increase the intensity of environmental regulations as appropriate, thereby promoting both environmental protection and the unification of domestic markets.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
The full text of this article is available to read as a PDF.
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