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The inhibition effect of bank credits on PM2.5 concentrations: Spatial evidence from high-polluting firms in China


Yang, Fan and Xu, Q and Li, K and Yuen, KF and Shi, W, The inhibition effect of bank credits on PM2.5 concentrations: Spatial evidence from high-polluting firms in China, Environmental Pollution pp. 1-16. ISSN 1873-6424 (In Press) [Refereed Article]

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DOI: doi:10.1016/j.envpol.2022.119639


Particulate Matter (PM2.5) pollution in China has been a primary concern for public health in recent years, which requires banks to appropriately control their credit supply to industries with high pollution, high energy consumption, and surplus capacity. For this reason, this paper examines economic determinants of PM2.5 concentrations and incorporates the spatial spillover effect of bank credit by employing the spatial Durbin model (SDM) under the stochastic impacts by regression on population, affluence and technology framework. Using China's provincial dataset from 1998 to 2016, the main findings are as follows: First, there is evidence in support of spatial dependence of PM2.5 concentrations and their inverted U-shaped relationship with economic growth in China. Second, PM2.5 concentrations in a province tend to increase as the level of its own urbanization increases, but they decrease as its own human capital and bank credit increase. Meanwhile, the level of neighboring urbanization positively influences a province's PM2.5 concentrations, whereas neighboring population size, industrialization, trade openness, and bank credit present negative impacts. Third, indirect effects of the SDM indicate significant and negative spatial spillover effect of bank credit on PM2.5 concentrations. These findings implicate policies on reforming economic growth, urbanization, human capital and bank credit to tackle PM2.5 pollution in China from a cross-provincial collaboration perspective.

Item Details

Item Type:Refereed Article
Keywords:Spatial Durbin model, PM<sub>2.5</sub> concentrations, bank credit, STIRPAT framework
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Maritime transportation and freight services
Objective Division:Transport
Objective Group:Water transport
Objective Field:International sea freight transport (excl. live animals, food products and liquefied gas)
UTAS Author:Yang, Fan (Mr Fan Yang)
UTAS Author:Shi, W (Dr Wenming Shi)
ID Code:150708
Year Published:In Press
Deposited By:Maritime and Logistics Management
Deposited On:2022-06-24
Last Modified:2022-06-24

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