Transportation Infrastructure Upgrading, Border Effect, and Pollution Transfer: Evidence from China's Yangtze River Delta

Abstract

From the perspective of transportation infrastructure upgrading, this paper discussed the motivation behind industrial firms’ pollution transfer to provincial borders. Using a panel data set of 41 cities in China's Yangtze River Delta from 2005 to 2020, this paper empirically tested the impact of intracity and intercity transportation infrastructure upgrading on pollution transfer through a two-way fixed-effects model. The results revealed the following: First, intracity transportation infrastructure upgrading forces local industrial firms to transfer pollution outward. Second, intercity transportation infrastructure upgrading accelerates pollution transfer to provincial borders. Third, in the central region, intracity transportation infrastructure upgrading does not significantly impact local pollution transfer. Intercity transportation infrastructure upgrading can aggravate border pollution, whether in the eastern or central regions. Furthermore, border pollution is more serious in the central region. The results have important practical significance for improving China's regional development planning and environmental governance system.