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Re-Examination of the Relationship between Industrial Agglomeration and Haze Pollution: From the Perspective of the Spatial Moderating Effect of Environmental Regulation

Author

Listed:
  • Xiaolin Wang

    (School of Economics, Hangzhou Dianzi University, Hangzhou 310018, China)

  • Zhenyang Li

    (Business School, Zhengzhou University, Zhengzhou 450001, China)

Abstract

This paper uses panel data from 284 Chinese cities from 2004 to 2020 and employs a dynamic spatial panel Durbin model to re-examine the relationship between industrial agglomeration, environmental regulation, and haze pollution. It further adopts a dynamic spatial moderation effect model to explore the spatial regulatory mechanism of environmental regulation. The results show that both local and neighboring industrial agglomeration have a significant “inverted U-shaped” relationship with local haze pollution, and the scale cumulative optimization effect can only be effectively played after the industrial agglomeration level of the locality and neighboring areas exceeds the inflection point. Local environmental regulation significantly inhibits haze pollution, while neighboring environmental regulation plays a promoting role. The moderating effect of environmental regulation on the relationship between industrial agglomeration and haze pollution shows spatial heterogeneity in the local and neighboring areas. Local environmental regulation has a “U-shaped” non-linear moderating effect while neighboring environmental regulation has a positive linear moderating effect. Therefore, the government should pay attention to the joint effort and coordinated advancement of industrial agglomeration and environmental regulation to further reduce urban haze pollution and enhance urban air quality.

Suggested Citation

  • Xiaolin Wang & Zhenyang Li, 2024. "Re-Examination of the Relationship between Industrial Agglomeration and Haze Pollution: From the Perspective of the Spatial Moderating Effect of Environmental Regulation," Sustainability, MDPI, vol. 16(17), pages 1-19, September.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7807-:d:1473484
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    References listed on IDEAS

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    1. Marcus Berliant & Shin-Kun Peng & Ping Wang, 2014. "Taxing pollution: agglomeration and welfare consequences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 665-704, April.
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    3. Congxin Li & Guozhu Li, 2020. "Does environmental regulation reduce China’s haze pollution? An empirical analysis based on panel quantile regression," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-14, October.
    4. Neves, Sónia Almeida & Marques, António Cardoso & Patrício, Margarida, 2020. "Determinants of CO2 emissions in European Union countries: Does environmental regulation reduce environmental pollution?," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 114-125.
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    6. Yunling Ye & Sheng Ye & Haichao Yu, 2021. "Can Industrial Collaborative Agglomeration Reduce Haze Pollution? City-Level Empirical Evidence from China," IJERPH, MDPI, vol. 18(4), pages 1-22, February.
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    Cited by:

    1. Hanna Li & Yu Chen, 2025. "Polluting Industry Agglomeration, Environmental Regulation, and Urban Air Quality," Sustainability, MDPI, vol. 17(4), pages 1-21, February.
    2. Yi Wang & Valentin Marian Antohi & Costinela Fortea & Monica Laura Zlati & Reda Abdelfattah Mohammad & Farah Yasin Farah Abdelkhair & Waqar Ahmad, 2024. "Shadow Economy and Environmental Sustainability in Global Developing Countries: Do Governance Indicators Play a Role?," Sustainability, MDPI, vol. 16(22), pages 1-23, November.

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