『Abstract
With economic development and the change of industrial structure,
industrial relocation is an inevitable trend. In the process of
industrial relocation, environmental externality and social cost
could occur due to market failure and government failure. Little
attention has been paid to this issue. In this paper, we address
it with a theoretical analysis and an empirical investigation
on the relationship between China's industrial relocation in the
early 1990s and energy consumption which is the primary source
of CO2 emission, an environmental externality
that causes increasing concerns. The macro-policy analysis suggests
that there would be a positive link between China's industrial
relocation in the early 1990s and energy saving (and environmental
externalities reduction). Using fixed-effect regression model
and simulation method, we provide an empirical support to this
argument. In order to further reduce environmental externalities
and social cost in the process of industrial relocation, we provide
policy suggestions as follows: First, strengthen the evaluation
of environmental benefits/costs; Second, pay more attention to
the coordinated social-economic development; Third, avoid long-lived
investment in high-carbon infrastructure in areas with industries
moved in; Fourth, address employment issue in the areas with industries
moved out.
Keywords: Energy consumption; Industrial relocation; Externality』
1. Introduction
2. Externalities and social cost of industrial relocation
3. Energy saving and externalities in China's industrial relocation
in the early 1990s: a policy perspective
3.1. Market-oriented economic reform and energy saving in
the process of industrial relocation
3.2. Gradient development strategy and energy saving in the process
of industrial relocation
3.3. Policy that encourages energy efficiency and energy saving
in the process of industrial relocation
3.4. Environmental protection policy and externalities reduction
in the process of industrial relocation
4. Empirical investigation of the industrial relocation impact
on energy consumption
4.1. The measurement of industrial relocation
4.2. The drivers behind China's industrial relocation in the
early 1990s
4.3. Method and data
4.4. The regression result
4.5. Comparing energy consumption under two scenarios
5. Further discussion
6. Conclusion and policy suggestions
Acknowledgment
References