This paper assesses the impact of environmental regulation stringency on the relocation of pollution-intensive firms in China. Pollution haven hypothesis (Porter theory) suggests that firms would (not) choose to relocate (but to innovate). We proxy the regulation stringency with multidimensional...

This paper examines the impact of environmental regulation stringency on the location choice of Chinese pollution-intensive firms. We find that the stringency reduces the number and growth rate of pollution-intensive firms in highly regulated regions. An important channel through which stringent...