Quantifying the effect of administrative approval reforms on SO2 emissions: a quasi-experiment in Chinese cities

The effects of the Administrative Examination and Approval System Reform on economic growth and entry of businesses have drawn much attention. However, few scholars pay attention to the impacts of this policy on SO2 emissions. Keeping in view the existing research gap, a spatial difference-in-difference (SDID) model is employed to assess the effects of the Administrative Examination and Approval System Reform on SO2 emissions in 297 Chinese cities during the period 1995–2020 from the perspective of spatial spillover effects. The results show that the establishment of Administrative Examination and Approval Center (AEAC) has significantly positive effects on the local SO2 emissions. The significant indirect (spatial spillover) effects are confirmed. That is, the establishment of AEAC of a given city has a significant positive impact on the SO2 emissions of neighboring cities. The findings are confirmed by several robustness tests. Our study findings have significant implications for the cross-border coordination of environmental policies that aim to improve the quality of the environment across borders.