Environmental Regulation and the Leakage of Industrial Emission in China

Our paper examined the pollution leakage by the environmental regulation applied in 2+26 cities which are Beijing and surrounding Beijing area. Based on daily emission data, we empirically find that leakage is possibly happened among the firms in the same industry. We also use the example of iron and steel industry to show how the price of input and out factors connect firms between regulated and unregulated regions.