The Role of Industrial Structure Upgrading in Moderating the Impact of Environmental Regulation on Air Pollution in China

Air pollution is an important factor affecting human health and daily life. Chinese government is making vigorous efforts to control air pollution. The upgrading of industrial structure is a problem-solving tool in environment and economic growth cases. This paper aims to explore the relationships among environmental regulation, the upgrading of industrial structure and air pollution. The PVAR (Panel Vector Auto Regression) model and moderation effect model has been used to conduct empirical analysis based on panel data of 30 provinces in China from 2004 to 2020. The results of analysis indicate (1) the environmental regulation can significantly reduce the air pollution, but the deterioration of air quality could not effectively influence environmental regulations. (2) The upgrading of industrial structure can weaken the air pollution and air pollution hinders the upgrading of industrial structure. (3) With the improvement of environmental regulation, the industrial structure is constantly upgraded, but the upgrading of the industrial structure has a negative effect on the improvement of environmental regulation. (4) The upgrading of industrial structure can positively moderate the influence of environmental regulation on air pollution.