SPATIAL STRATEGIC INTERACTION IN ENVIRONMENTAL PROTECTION: AN EMPIRICAL STUDY OF THE CHINESE PROVINCES

摘要

In this study, we empirically investigate the issue of strategic interaction among Chinese provincial governments in determining their levels of environmental protection efforts. Based on theoretical models of strategic interaction, which lead to the theoretical reaction function, we specify our empirical model and estimate the reaction slope of our empirical reaction function. By applying a panel data approach, our regression analysis shows that the estimated reaction slope is significantly positive, which suggests that Chinese provincial governments interact strategically in deciding the levels of their efforts in environmental protection.