How can urban administrative boundary expansion affect air pollution? Mechanism analysis and empirical test.

As a momentous policy tool for spatial management, urban administrative boundary expansion (UABE) significantly impacts resource reorganization and development modes. However, the environmental effects of UABE are easily ignored. Whether UABE can also impove the environmental quality in addition to its economic effects remains to be answered. To fill this gap, we took the city-county merger policy (CCMP) in China as quasi-experimental evidence and empirically investigated the impacts of CCMP on air pollution based on the difference-in-difference method. The impact mechanisms were also analyzed from a whole-process perspective. The results demonstrate that, apart from expanding the urban scale, UABE can improve urban air quality as well. Further analysis shows that the positive effect is mainly realized by source control and process management, rather than end-of-pipe treatment. Besides, the impacts of UABE on air pollution exhibit obvious spatial heterogeneous characteristics. We also reported that the environmental effects of UABE are largely dependent on governmental control, rather than market factors. According to the results above, flexible administrative boundary adjustment, strict government regulations, and effective market systems are required to realize the dual goals of environmental improvement and space optimization.