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How does producer services’ agglomeration promote carbon reduction?: The case of China

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  • Zhao, Jun
  • Dong, Xiucheng
  • Dong, Kangyin

Abstract

This study tests how producer services' agglomeration (PSA) affects carbon dioxide (CO2) emissions in China by using balanced panel data of China's 30 provinces from 2003 to 2017 to analyze the three effects (i.e., scale, technique, and composition) of PSA on CO2 emissions. Furthermore, by dividing China's 30 provinces into three regions, we further explore the potential regional heterogeneity in the effects between these two variables. The empirical results indicate that an increase in PSA can effectively mitigate the greenhouse effect in China. PSA increases CO2 emissions by improving economic scale; however, strengthening technology and knowledge spillover effects and optimizing industrial structure can alleviate CO2 emissions. Although PSA helps reduce CO2 emissions in all three regions, we find significant regional heterogeneity. Our results imply that promoting the development of the producer services industry is essential to accelerate the realization of “carbon neutrality.”

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  • Zhao, Jun & Dong, Xiucheng & Dong, Kangyin, 2021. "How does producer services’ agglomeration promote carbon reduction?: The case of China," Economic Modelling, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:ecmode:v:104:y:2021:i:c:s0264999321002133
    DOI: 10.1016/j.econmod.2021.105624
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    2. Yan, Bin & Wang, Feng & Dong, Mingru & Ren, Jing & Liu, Juan & Shan, Jing, 2022. "How do financial spatial structure and economic agglomeration affect carbon emission intensity? Theory extension and evidence from China," Economic Modelling, Elsevier, vol. 108(C).
    3. Dong, Kangyin & Dong, Xiucheng & Jiang, Qingzhe & Zhao, Jun, 2021. "Assessing energy resilience and its greenhouse effect: A global perspective," Energy Economics, Elsevier, vol. 104(C).
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    5. Xiaoling Zhang & Zhiwei Pan & Decai Tang & Zixuan Deng & Valentina Boamah, 2023. "Impact of Environmental Regulation and Industrial Agglomeration on Carbon Emissions in the Yangtze River Economic Belt," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    6. Shoufu Yang & Hanhui Zhao & Yiming Chen & Zitian Fu & Chaohao Sun & Tsangyao Chang, 2023. "The Impact of Digital Enterprise Agglomeration on Carbon Intensity: A Study Based on the Extended Spatial STIRPAT Model," Sustainability, MDPI, vol. 15(12), pages 1-33, June.
    7. Yan, Yu & Huang, Junbing, 2022. "The role of population agglomeration played in China's carbon intensity: A city-level analysis," Energy Economics, Elsevier, vol. 114(C).
    8. Peng, Hui & Lu, Yaobin & Wang, Qunwei, 2023. "How does heterogeneous industrial agglomeration affect the total factor energy efficiency of China's digital economy," Energy, Elsevier, vol. 268(C).
    9. Tianling Zhang & Panda Su & Hongbing Deng, 2021. "Does the Agglomeration of Producer Services and the Market Entry of Enterprises Promote Carbon Reduction? An Empirical Analysis of the Yangtze River Economic Belt," Sustainability, MDPI, vol. 13(24), pages 1-21, December.
    10. Dou, Yue & Li, Yiying & Dong, Kangyin & Ren, Xiaohang, 2022. "Dynamic linkages between economic policy uncertainty and the carbon futures market: Does Covid-19 pandemic matter?," Resources Policy, Elsevier, vol. 75(C).
    11. Senhua Huang & Feng Han & Lingming Chen, 2023. "Can the Digital Economy Promote the Upgrading of Urban Environmental Quality?," IJERPH, MDPI, vol. 20(3), pages 1-21, January.
    12. Yaoshan Ma & Qingyu Yao, 2022. "Impact of Producer Service Agglomeration on Carbon Emission Efficiency and Its Mechanism: A Case Study of Urban Agglomeration in the Yangtze River Delta," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
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    14. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).

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    More about this item

    Keywords

    CO2 emissions; Producer services' agglomeration; Mediating effect; Heterogeneous analysis; China;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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