Abstract
The industrial sector of China is critical to the country’s economic growth. On the other side, industrialisation has resulted in a high rate of emissions, pushing China to spend extensively on industrial pollution remediation. As a result, this study looks at the relationship between investment completed in the treatment of industrial pollution and economic development. Initially, the study used the global Moran’s I test (Queen’s contiguity matrix) to find spatial autocorrelation for the ‘investment completed in the treatment of industrial pollution’ factor, where the study found a positive association across Chinese provinces, and suggest the existence of spatial autocorrelation. Thereafter, a time-fixed effect spatial error model was used due to the lowest Akaike information criterion and Bayesian information criterion to analyse regional data of China from 1999 to 2018. The data reveal a positive association between investment completed in the treatment of industrial pollution and regional economic growth, both in the short and long term. Furthermore, the negative consequences of urban wages and foreign investment on investment completed in the treatment of industrial pollution are having the reverse effect on regional green development, necessitating ecologically friendly actions to mitigate the negative environmental effects of both. The results highlight the need for policymakers in other countries to review their plans for economic expansion and create environmentally friendly legislation. By implementing the Chinese green economic growth model, policymakers in industrially polluting nations can reduce industrial pollution and foster green growth in their nation.
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Notes
Stetzer (1982) explained Queen’s contiguity as a contiguity matrix where each region shares at least one single edge corner or boundary.
For fixed effect model and random effect model, read Mutl and Pfaffermayr (2011).
Su and Yang (2015)
Korniotis (2010)
σit represents the constant variance over time and space.
Li et al. (2019)
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The idea of the current paper is first presented by Dr. Muhammad Imran; with the help of the remaining co-authors, he accomplished his task. Dr. Muhammad Imran designed the ‘Methodology’ section and simulated and listed the results for spatial econometric regression. Dr. Naveed Hayat and Mr. Salman Wahab appreciated the idea and helped in drafting and, particularly, revising the manuscript, where they put forward several modifications and amendments at different stages of the manuscript. Dr. Muhammad Ali Saeed and Dr. Abdul Sattar helped with data management, approving the results, and also helped in proofreading. All authors read and approved the final manuscript.
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Imran, M., Hayat, N., Saeed, M.A. et al. Spatial green growth in China: exploring the positive role of investment in the treatment of industrial pollution. Environ Sci Pollut Res 30, 10272–10285 (2023). https://doi.org/10.1007/s11356-022-22851-x
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DOI: https://doi.org/10.1007/s11356-022-22851-x