IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v57y2026i2ne70145.html

Industrial Spatial Planning and Carbon Emissions: Evidence From China's Minimum Floor Area Ratio Regulation

Author

Listed:
  • Yixi Hu
  • Fang He
  • Eddie Chi‐man Hui
  • Jianfu Shen

Abstract

Amid growing land constraints, vertical development has become a global trend in industrial spatial planning. However, empirical evidence on the environmental consequences of vertical industrial expansion remains scarce. This study uses the intensity of industrial minimum floor area ratio (MinFAR) regulation to capture the extent of vertical land use, evaluating its effect on industrial carbon emissions intensity by drawing on data from 285 cities in China. Results indicate that MinFAR‐driven vertical industrial land use reduces carbon emissions, with each one‐unit increase in MinFAR intensity lowering emission intensity by 5.1%. This decline operates through enhanced production coordination, industrial technological upgrading, and improved green governance and resource sharing. Notably, the technological‐upgrading channel is driven more by high‐tech scale expansion than by innovation‐output upgrading. Further evidence shows that stronger governance capacity, more diversified industries, better financial support, and stronger technological foundations strengthen the carbon‐reduction effectiveness of vertical land use. Expanding knowledge of vertical land use and its environmental implications, this study offers valuable insights for policymakers worldwide to adjust land use strategies for industrial development and carbon governance.

Suggested Citation

  • Yixi Hu & Fang He & Eddie Chi‐man Hui & Jianfu Shen, 2026. "Industrial Spatial Planning and Carbon Emissions: Evidence From China's Minimum Floor Area Ratio Regulation," Growth and Change, Wiley Blackwell, vol. 57(2), June.
    • Handle: RePEc:bla:growch:v:57:y:2026:i:2:n:e70145
    DOI: 10.1111/grow.70145
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/grow.70145
    Download Restriction: no
    File URL: https://libkey.io/10.1111/grow.70145?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pierre Mohnen & Bronwyn H. Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Eurasia Business and Economics Society, vol. 3(1), pages 47-65, Spring.
    2. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    3. Edward L. Glaeser & Sari Pekkala Kerr & William R. Kerr, 2015. "Entrepreneurship and Urban Growth: An Empirical Assessment with Historical Mines," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 498-520, May.
    4. Yang, Yuanyuan & Yang, Mingying & Zhao, Boxuan & Lu, Ziwen & Sun, Xiao & Zhang, Zhengfeng, 2025. "Spatially explicit carbon emissions from land use change: Dynamics and scenario simulation in the Beijing-Tianjin-Hebei urban agglomeration," Land Use Policy, Elsevier, vol. 150(C).
    5. Zhou, Di & Huang, Qing & Chong, Zhaohui, 2022. "Analysis on the effect and mechanism of land misallocation on carbon emissions efficiency: Evidence from China," Land Use Policy, Elsevier, vol. 121(C).
    6. Wu, Jianxin & Xu, Hui & Tang, Kai, 2021. "Industrial agglomeration, CO2 emissions and regional development programs: A decomposition analysis based on 286 Chinese cities," Energy, Elsevier, vol. 225(C).
    7. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2019. "The Costs of Agglomeration: House and Land Prices in French Cities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(4), pages 1556-1589.
    8. Jan K. Brueckner & Shihe Fu & Yizhen Gu & Junfu Zhang, 2017. "Measuring the Stringency of Land Use Regulation: The Case of China's Building Height Limits," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 663-677, July.
    9. Haichao Yu & Shangze Dai & Haiqian Ke, 2024. "Industrial collaborative agglomeration and green economic efficiency—Based on the intermediary effect of technical change," Growth and Change, Wiley Blackwell, vol. 55(2), June.
    10. Xu, Shichun & Cavusgil, Erin, 2019. "Knowledge breadth and depth development through successful R&D alliance portfolio configuration: An empirical investigation in the pharmaceutical industry," Journal of Business Research, Elsevier, vol. 101(C), pages 402-410.
    11. Tatsuhito Kono & Takayuki Kaneko & Hisa Morisugi, 2010. "Necessity of minimum floor area ratio regulation: a second-best policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 523-539, June.
    12. Xu, Li & Tan, Junlan, 2020. "Financial development, industrial structure and natural resource utilization efficiency in China," Resources Policy, Elsevier, vol. 66(C).
    13. Joshi, Kirti Kusum & Kono, Tatsuhito, 2009. "Optimization of floor area ratio regulation in a growing city," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 502-511, July.
    14. Wang, Hanjie & Yu, Xiaohua, 2023. "Carbon dioxide emission typology and policy implications: Evidence from machine learning," China Economic Review, Elsevier, vol. 78(C).
    15. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    16. Zhang, Lin & He, Xiaoxia & Jia, Zhenli, 2023. "Industrial agglomeration, public services and city size: Evidence from 286 cities in China," Land Use Policy, Elsevier, vol. 131(C).
    17. Susan Bright & Sarah Blandy & Fabiana Bettini, 2026. "Residential vertical urbanisation: The intertwining of law and financialisation," Urban Studies, Urban Studies Journal Limited, vol. 63(1), pages 98-115, January.
    18. Borck, Rainald, 2016. "Will skyscrapers save the planet? Building height limits and urban greenhouse gas emissions," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 13-25.
    19. Cai, Hongbin & Wang, Zhi & Zhang, Qinghua, 2017. "To build above the limit? Implementation of land use regulations in urban China," Journal of Urban Economics, Elsevier, vol. 98(C), pages 223-233.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kono, Tatsuhito & Takamura, Nozomu, 2026. "Road price and capacity policies subject to a fiscal constraint in a city," Transportation Research Part B: Methodological, Elsevier, vol. 204(C).
    2. Fritsch, Michael & Changoluisa, Javier, 2017. "New business formation and the productivity of manufacturing incumbents: Effects and mechanisms," Journal of Business Venturing, Elsevier, vol. 32(3), pages 237-259.
    3. Zheng, Liang & Zhao, Zhong, 2017. "What drives spatial clusters of entrepreneurship in China? Evidence from economic census data," China Economic Review, Elsevier, vol. 46(C), pages 229-248.
    4. Teimuraz Gogokhia & George Berulava, 2021. "Business environment reforms, innovation and firm productivity in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 221-245, June.
    5. Grande, Rafael & Muñoz de Bustillo, Rafael & Fernández Macías, Enrique & Antón, José Ignacio, 2020. "Innovation and job quality. A firm-level exploration," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 130-142.
    6. Pietro Moncada-Paternò-Castello, 2022. "Top R&D investors, structural change and the R&D growth performance of young and old firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 1-33, March.
    7. Yilin Dong, 2020. "Determinants of entry: Evidence from new manufacturing firms in the U.S," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1542-1561, December.
    8. Othmani, Abdelhafidh & Ben Yedder, Nadia & Bakari, Sayef, 2023. "The Cointegration Relationship between Patent, Domestic Investment and Economic Growth in United States of America," MPRA Paper 118245, University Library of Munich, Germany.
    9. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    10. Jaan Masso & Amaresh K Tiwari, 2021. "Productivity Implications Of R&D, Innovation And Capital Accumulation For Incumbents And Entrants: The Case Of Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 130, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    11. Jun Liu & Yu Qian & Huihong Chang & Jeffrey Yi-Lin Forrest, 2022. "The Impact of Technology Innovation on Enterprise Capacity Utilization—Evidence from China’s Yangtze River Economic Belt," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    12. Dawid, Herbert & Pellegrino, Gabriele & Vivarelli, Marco, 2017. "Is the demand-pull driver equally crucial for product vs process innovation?," MERIT Working Papers 2017-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Sangil Kim & Jungmin Yoo, 2017. "Does R&D Expenditure with Heavy Related Party Transactions Harm Firm Value?," Sustainability, MDPI, vol. 9(7), pages 1-15, July.
    14. Klaus Friesenbichler & Michael Peneder, 2016. "Innovation, competition and productivity," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 535-580, July.
    15. Halima Jibril & Stephen Roper, 2022. "Of chickens and eggs: Exporting, innovation novelty and productivity," Working Papers 027, The Productivity Institute.
    16. Başak Dalgıç & Burcu Fazlıoğlu, 2021. "Innovation and firm growth: Turkish manufacturing and services SMEs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 395-419, September.
    17. Liu, Ruiming & Yan, Haosheng & Zhang, Zebang, 2024. "Does historic preservation affect firms' output? Evidence from the awarding of the Historic City title in China," China Economic Review, Elsevier, vol. 85(C).
    18. Zongyang Li, 2026. "How Do Leading Enterprises Drive Strategic Industrial Transformation? Evidence from Manufacturing Agglomeration in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 5728-5757, April.
    19. Vahter, Priit & Vadi, Maaja, 2024. "The relationship of technological and organizational innovation with firm performance: Opening the black box of dynamic complementarities," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    20. Jiaqi Qin & Wenjing Luo & Qian Cheng, 2026. "Industrial collaborative agglomeration and green innovation: spatial interactions and regional impacts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 75(1), pages 1-28, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:57:y:2026:i:2:n:e70145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.