Using Firm-Level Adjustment Model to Explore the Spatial Effect of Industrial Water Pollution Regulation

In the fast industrializing China, integrated water management requires concerning environmental regulation's spatial effect on regional industrial pollution. Taking the mechanical manufacturing sector in Deyang city as the case, a firm-level adjustment model is built to estimate the firms' current COD (Chemical Oxygen Demand) emissions and abatement behaviors under the improved water pollution regulation. The spatial patterns of firms are analyzed by Exploratory Spatial Data Analysis (ESDA) indicator. The firms' emissions and abatement behaviors are aggregated at town-level and river reach-level. The results show that the 20% increased regulation intensity will have significant spatial cluster effect for COD reduced rate. Among the five basins in the city area, Mianyuanhe and Shitingjiang accept the most current COD emission, while Yazihe and Qingbaijiang will have the largest reduced rate.