The economic inequality effect of environmental policies--a case from China's "authoritarian environmentalism" actions

Command-and-control environmental policies are crucial for achieving sustainable development across environmental, economic, and social dimensions. However, these policies often neglect the impact on vulnerable populations and impoverished regions. This paper reveals the mechanisms and impacts of CAC exacerbating regional economic inequality under resource endowment differences through empirical analysis of county panel data in China from 2010 to 2021. Taking the "closure and relocation" policy of chemical enterprises along the Yangtze River as an example, the study finds that in economically developed regions, the policy realizes a win-win situation regarding environmental quality improvement and economic growth by upgrading the industrial structure. Economic growth is significantly inhibited in areas with high chemical dependence despite improving environmental quality. Residents experience increased economic pressure and cannot enjoy the benefits of environmental improvements. The study also shows that despite policies aimed at improving environmental quality, they have failed to realize the expected goals in some regions fully and have dampened regional economic activities. Through systematic empirical analysis, this study deepens the understanding of the impacts of CAC. It highlights the trade-offs and differential impacts in the implementation of testimonies. This study provides empirical references for policy design and optimization in related fields, theoretical support, and policy recommendations for global sustainable development.