Can environmental regulation promote high-quality economic development?: Evidence from China

This study utilizes a dataset comprising 284 prefecture-level cities in China, covering the period from 2005 to 2020. Its objective is to empirically examine the influence of environmental regulation on the attainment of high-quality economic development. The assessment of urban environmental regulation and high-quality economic development is conducted in a rational manner. The results of the study indicate that the implementation of more stringent environmental regulations has the potential to improve the overall quality of urban economic growth. This conclusion provides support for Porter's theory. The primary objective of environmental regulation is to foster sustainable economic growth by encouraging the use of environmentally friendly manufacturing technologies, improving production efficiency, and attracting skilled individuals. The results of heterogeneity testing indicate that there are no significant regional disparities in the promotional impact of environmental regulation on the quality of economic development. This suggests that the government's environmental regulation plan can be successfully implemented to foster high-quality development. However, it is worth noting that the effectiveness of environmental regulation measures towards the end of governance appears to be somewhat limited in promoting high-quality development.