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Does Innovative Industrial Agglomeration Promote Environmentally-Friendly Development? Evidence from Chinese Prefecture-Level Cities

Author

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  • Chuang Li

    (School of Economics and Management, Xinjiang University, Urumqi 830046, China
    These authors contributed equally to this work.)

  • Qingqing Liu

    (School of Economics and Management, Xinjiang University, Urumqi 830046, China
    These authors contributed equally to this work.)

  • Qing Li

    (School of Economics and Management, Xinjiang University, Urumqi 830046, China)

  • Hailing Wang

    (School of Economics and Management, Xinjiang University, Urumqi 830046, China)

Abstract

China has promised to meet the “carbon peaking and carbon neutrality” goals. Exploring the relationship between innovative industrial agglomeration and environmental pollution plays an important role in the realization of these goals and sustainable development. Based on the panel data of 277 prefecture-level cities in China from 2007 to 2019, this paper uses the multi-period difference-in-difference (DID) model to examine the impact and mechanism of the innovative industrial agglomeration pilot (IIAP) policy on the environment. Furthermore, we explore the spatial effect of the IIAP using spatial DID. The findings show that, firstly, the IIAP policy significantly contributes to environmentally-friendly development in terms of enhancing carbon emission efficiency ( CEE ) and reducing environmental pollution index ( EPI ). Secondly, the IIAP policy promotes environmentally-friendly development mainly by improving the technological innovation level. Additionally, the heterogeneity analysis shows that the environmentally-friendly effect of the IIAP policy is primarily in the eastern region, large cities, and non-resource-based cities. Finally, there is a significant spatial effect of the IIAP policy on environmentally-friendly development, mainly reflected in the weak siphon effect between treatment group cities and neighboring regions. We suggest that the government should continue to maintain the steady growth of the IIAP cities and improve the energy utilization efficiency through a policy of green technology innovation. The government should also optimize the spatial layout of the pilot cities and make full use of the energy advantages of each region to better promote environmentally-friendly development.

Suggested Citation

  • Chuang Li & Qingqing Liu & Qing Li & Hailing Wang, 2022. "Does Innovative Industrial Agglomeration Promote Environmentally-Friendly Development? Evidence from Chinese Prefecture-Level Cities," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13571-:d:948275
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