Study on the Spatial Effect of Environmental Regulation on the Upgrading of Industrial Structure

Abstract

City cluster is a new geographical unit of global geographical division of labor, and industry and city are the two core elements of city clusters, exploring the spatial dynamics of industrial structure advancement under environmental regulation is of profound theoretical and practical relevance. This research targets the Guangdong-Hong Kong-Macao Greater Bay Area, a region characterized by its distinct and varied urban landscape, to serve as the case study. By adopting the spatial Durbin model, the paper probes the repercussions of environmental regulations on the evolution of industrial structure, considering the spatial spillover effect. Results reveal that environmental regulations not only catalyze the progression of industrial structures within the Greater Bay Area but also initiate beneficial spillover impacts. The influence of these regulations is shown to intensify progressively over time. Furthermore, the paper posits that the amplification of collaborative efforts and the enforcement of stringent environmental protection policies within the area could further reinforce both the immediate and extended influences of environmental regulations on the maturation of industrial structures.