Does green location-oriented policy enhance ecological resources and reduce air pollution? Empirical analysis from counties in China

Green location-oriented policy plays a vital role in improving the ecological security. Using the multi-phase difference-in-difference (DID) method, this study evaluates the impact of national key ecological functional areas (NKEFA) on ecological resources and environmental pollution. There are several important findings. Firstly, NKEFA effectively enhances ecological resources and reduces air pollution, the policy effect only manifests after two years of implementation. Secondly, NKEFA has indirectly improved air quality by promoting technological innovation, advanced industrial structure, and regional ecological resource quality. Moreover, the relationship between NKEFA and ecological resources is negatively regulated by industrialization and economic agglomeration, while the relationship between NKEFA and air pollution is positively regulated by them. Thirdly, NKEFA has the strongest impact on enhancing ecological resources in the eastern region, and it is more effective in reducing air pollution in the central and eastern regions compared to the western regions. Furthermore, the NKEFA demonstrates the greatest effectiveness in promoting ecological resources and reducing air pollution in water and soil conservation areas. However, there is a spatial spillover effect, which suggests that this policy has some negative impacts on the surrounding counties' ecological environment.