Air pollution outcomes, land misallocation, and the transmission through urban sprawl

Abstract

Air pollution is an inevitable negative environmental externality in the process of industrialization and urbanization in countries around the world. Land misallocation in the process of urbanization and industrialization and the resulting urban sprawl exacerbates the above problems. As a major country in the stage of rapid urbanization and industrialization, China also faces severe air pollution problems. Therefore, this paper will systematically study the impact of land misallocation and urban sprawl on air pollution. We first set up the utility maximization problem of each economic entity in the process of land misallocation in the mathematical model, and form a general equilibrium theory model to analyze the relationship between land misallocation, urban sprawl and air pollution, and then put forward the research hypotheses. We further use the big data of land market transactions of China Land Market Network and LandScan global population data to build the land misallocation index and urban sprawl index respectively, and use an extended mediating effect model to empirically test the hypotheses. The results suggest that the effect of land misallocation on air pollution is significantly positive, and the impact of land misallocation on urban sprawl largely depends on the return rate of land relative to labor (RRIRL). When the RRIRL is relatively low, the impact is weak, or even has a negative effect to some extent. At this time, low transportation costs are conducive to reducing air pollution. On the contrary, when the RRIRL is relatively high, land misallocation has a significant role in promoting urban sprawl. At this time, high traffic costs are conducive to reducing air pollution. In addition, we also find that there is an inverted U-shaped relationship between urban sprawl and air pollution. When the urban sprawl level is low, its impact on air pollution increases with the increase of its level, but once it exceeds a specific node, the impact will decrease. Based on the characteristics of the relationship among land misallocation, urban sprawl and air pollution under different RRIRL, we summarize four environmentally friendly urban development paths. We bring the land bid rent theory and environmental pollution research into a same theoretical model framework, which provides a modeling idea and research perspective with a micro-foundation for subsequent research on land misallocation. We integrate the research conclusions of existing literature and unify them under the research frameworks concerning different RRIRL in the empirical results, which greatly improving their applicability. The four urban development paths summarized in this paper will also provide inspiration for future researchers and policy makers.

Keywords: Air pollution; Land misallocation; Urban sprawl.