Regulatory Arbitrage by Governments

Investigating how local governments strategically respond to imbalanced environmental regulations in land conveyance.

Regulatory Arbitrage by Governments and Land Conveyance

with Eddie C.M. Hui, Lulu Pan, Jianfu Shen

Regional Studies — Under review

Following the Clean Air Action 2013, counties bordering regions with stricter air pollution regulations conveyed more land to polluting industries. Land conveyance prices were strategically manipulated, indicating deliberate price reductions by local governments to attract polluting activities. This led to enhanced economic growth but exacerbated air pollution.