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August 2, 2026Environment Development and SustainabilityOpen Access

Regional integration and firms’ environmental performance: Evidence from Chinese urban agglomerations under relative regulatory stringency

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Authors

CYChenyang YuHLHarry F. LeeHLHongyu Long

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Overview

Randomized trial examines environmental performance in firms amidst regulatory gaps, suggesting thresholds are crucial.

Key Points

  • This research investigates how regional integration influences firm environmental performance in China, particularly under varying regulatory conditions.
  • Data from 130,727 industrial firms in 137 cities across 16 urban agglomerations was analyzed.
  • Environmental performance was estimated using the Kumbhakar–Lien–Hardaker stochastic frontier approach.
  • Regional integration was quantified through a spatial division-of-labor index, and regulatory disparity was assessed by the core–periphery regulatory gap.
  • Regional integration generally enhances firm environmental performance, with improvements noted on average.
  • The positive impact of integration diminishes as the regulatory gap widens, negatively affecting firms in core cities when relative regulation exceeds 1.464.
  • This threshold effect is more pronounced in non-state-owned and non-energy-intensive firms.

Cite This Study

Yu et al. (2026) studied this question.

synapsesocial.com/papers/6a6eeacb1b0468a7eeab346bhttps://doi.org/10.1007/s10668-026-08009-6
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