Abstract
How does the agglomeration economy affect carbon emissions? Does it hinder China's zero-carbon emissions and carbon neutral goals? This study explored the impact of industrial agglomeration on carbon emissions and spatial spillover effects by expanding the output density theoretical model of Ciccone & Hall. The main findings are as follows: (1) Industrial labor and technology agglomerations increase regional carbon emissions, while industrial output agglomeration reduces emissions in the immediate term. Industrial capital agglomeration has no significant immediate effect on carbon emission. (2) Industrial output and technology agglomerations have significant lag effects. Output agglomeration increases carbon emissions, while technology agglomeration reduces emission levels. (3) The impact of industrial output agglomeration on regional carbon emissions shifts from a positive inhibitory effect into a negative aggravating effect. In comparison, industrial technology agglomeration transitions from increasing carbon emissions in the immediate term into having a suppressing effect in the long term. (4) There are significant regional differences in the impact of industrial output and capital agglomerations, while industrial labor and technology agglomerations showed no significant regional difference. The results are important in developing policies and strategies of the economy and the environment.
The Impact of Industrial Agglomeration on Carbon Emissions: Empirical Evidence from China
