| "Jing-Jin-Ji collaborative development plan" points out that the core of this plan is to relief Beijing’s extra functions except as China’s capital. This must lead to the problem of industry transfer in Jing-Jin-Ji. This paper focuses mainly on the Jing-Jin-Ji coordinated development from the perspective of industry transfer. Jing-Jin-Ji is one of the most serious polluted areas in China, and there is a large gap between these three districts. Generally speaking, the developed district relatively attaches more importance to the environmental quality, while the less developed district pay more attention on economic growth. Through the interregional industry transfer model, we find that if different districts in the same region assign different weights to the environmental quality and economic growth, industry transfer from the developed district that attaches more importance to the environmental quality to the less developed district that does not care about the environmental quality will enhance the whole region’s social welfare. Through our analysis on the enterprise that been transferred, the developed district and the less developed district, we find that the willingness of industry transfer of these three parties is closely related to the degree of attention to the environmental quality of the developed district. We also find that when the developed district does not take the environmental quality very seriously, industry transfer will decrease this district’s social welfare, but increase the social welfare of the less developed district; and that when the developed district takes the environmental quality very seriously, industry transfer will increase both districts’ social welfare. Furthermore, if we introduce the compensation mechanism, then both districts will benefit from industry transfer, and the optimal share of the compensation depends on the bargaining power of both districts. Combining with the theoretical analysis, we put forward some suggestions at the end of this paper. |
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