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How heterogeneous industrial agglomeration impacts energy efficiency subject to technological innovation:Evidence from the spatial threshold model

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  • Wen, Yuyuan
  • Yu, Zilong
  • Xue, Jingjing
  • Liu, Yang

Abstract

The relationship between industrial agglomeration (IA) and energy efficiency (EE) is significant for China to promote high-quality urban economic development and achieve China's dual carbon goals. Since technological innovation (TI) and green TI (GTI) are vital elements in the evolution of socioeconomic change and green development, this study employs a spatial threshold model to explore the technology innovation dependency of the influence of heterogeneous IA on EE based on prefecture-level city panel data of the manufacturing sector from 2006 to 2014 in China. This study finds that diversified IA (DIA) has a spatial threshold impact on EE subject to TI or GTI, while specialized IA (SIA) does not. DIA has significant positive direct, spillover, and overall effects on EE at the high TI and GTI thresholds. The distance attenuation feature is evident in the spatial spillover effect of DIA on EE. DIA impacts EE through its spatial effects on labor pooling, knowledge spillovers, and input sharing. The findings offer insights into the development of IA patterns and the enhancement of EE.

Suggested Citation

  • Wen, Yuyuan & Yu, Zilong & Xue, Jingjing & Liu, Yang, 2024. "How heterogeneous industrial agglomeration impacts energy efficiency subject to technological innovation:Evidence from the spatial threshold model," Energy Economics, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:eneeco:v:136:y:2024:i:c:s0140988324003943
    DOI: 10.1016/j.eneco.2024.107686
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    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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