The Impact of Air Pollution Regulations on High-Quality Economic Development

Abstract

The pursuit of high-quality economic development is a critical challenge in the context of increasing environmental concerns, particularly air pollution. This study delves into the efficacy of environmental regulations in fostering economic growth that is both sustainable and of high quality. Utilizing the entropy weight method, an index system for high-quality economic development is established, and a comprehensive analysis of panel data from 30 provinces in China, spanning from 2008 to 2020, is conducted through a two-way fixed differential model. The study examines the regional heterogeneity in the impact of policy and explores the mediating roles of industrial structure upgrading and technological innovation in advancing high-quality economic development within regions prioritized by policy. The findings reveal that regulatory policies can indeed enhance high-quality economic development, albeit with regional disparities observed between the eastern and central regions. The paper concludes with a set of targeted recommendations for policy implementation.