Effects of Manufacturing Agglomeration on Pollutant Emissions: The Role of Energy Intensity in China

Manufacturing agglomeration (MA) is an important driving force for both sustained economic expansion and structural upgrading. Understanding whether and how MA contributes to energy conservation and pollutant mitigation is essential for promoting China’s green transition and offers valuable insight for emerging economies pursuing sustainable growth. The paper first theoretically examines the mechanisms linking MA, energy intensity (EI), and pollutant emission (PE). To overcome the regression bias caused by the heterogeneity of pollutant types among cities, the comprehensive index of PE is constructed. The empirical analysis yields two principal findings. First, MA significantly reduces PE, and this relationship remains robust after a series of tests. Second, EI plays a significant mediating role between MA and PE, that is, MA can achieve the reduction targets of PE by reducing EI. Therefore, in addition to its established role in fostering economic growth, MA should be utilized for its environmental advantages. Policymakers should give greater weight to the capacity of MA to enhance energy conservation and emission reduction, so as to stimulate the positive interaction among MA, EI, and PE, and thereby formulate more differentiated policies.