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Impact of haze pollution and human capital on economic resilience: evidence from prefecture-level cities in China

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Abstract

As cities suffer from frequent pollution events and massive population gathering in cities, haze pollution and human capital exert a significant influence on economic resilience. Thus it is significant to thoroughly investigate city economic resilience for the sound development of the city economy and enhance economic resilience. Based on the data from 239 cities in China from 2005 to 2017, this paper uses the OLS model to study the impact of haze on economic resilience. The findings reveal that haze pollution significantly reduces economic resilience. Also, there is a significant negative correlation between haze pollution and economic resilience in the East and Middle areas, while there is an adverse nexus in the West. Human capital has a positive role in promoting economic resilience, and this role is the strongest in the Middle area and the weakest in the West area. Moreover, human capital positively moderates haze pollution and economic resilience in Full sample, and East and Middle sample sets, while insignificant in the West sample set. Considering the possible endogeneity of the model, the robustness of the above results is tested using System GMM two-step and 2SLS methods. From the perspective of haze pollution, this study deeply excavates the short board factors affecting economic resilience. It regards human capital as an essential variable to repair the weak links of the economy and enhance economic resilience, which is conducive to improving the anti-risk ability of China's economy under the background of the gradual intensification of the contradiction between environmental pollution and economic growth.

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Notes

  1. Reform and opening up, a policy of internal reform and external opening up that the Chinese government embarked on after the Third Plenary Session of the Eleventh Central Committee in December 1978. In this context, the Chinese government tried to reform the economic system of the time in all aspects and attempted to shift the economic system from a planned economy to a market economy. After this reform, economic development yielded world-renowned construction achievements.

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Acknowledgements

This work was supported in part by the Ministry of Science and Technology of China under Grant 2020AAA0108400, in part by the National Natural Science Foundation of China under Grant 71825007, in part by the Strategic Priority Research Program of CAS under Grant XDA2302020, in part by the National Natural Science Foundation of China (71463057), in part by the Special Research Project on Science and Technology Innovation Strategy of **njiang Uygur Autonomous Region (2021B04001-4), in part by the special project of the School of Business and Economics, Shanghai Business School “Research on the Impact of Digital Economy on High-Quality Economic Development” (SWJJ-GYZX-2021-06). The usual disclaimer applies.

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Liu, L., Meng, Y., Wu, D. et al. Impact of haze pollution and human capital on economic resilience: evidence from prefecture-level cities in China. Environ Dev Sustain 25, 13429–13449 (2023). https://doi.org/10.1007/s10668-022-02625-8

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