Abstract
This paper investigates the relationship between agglomeration and water pollution, and the effect of environment policies on water pollution reduction. The study employs a quasi-natural experimental method by coupling river water monitoring sites and development zones (DZs). We found that DZs were associated with water quality deterioration in their surrounding areas. However, the “Water Ten Plan”, which was released in 2015 and requires DZs to install water treatment facilities, effectively reduced water pollution, especially for those DZs with more polluting industries. Our findings provide evidence that agglomeration can facilitate efficient processing of wastewater by enabling its centralized treatment. The paper provides quantitative evidence for the effect of agglomeration and environmental policies from a micro point of view.
Highlights
Development zones (DZs) are regarded as one of the most important forms of agglomeration, and an engine of regional economic development [1]
Others argue that agglomeration can alleviate pollution for the following reasons: (1) Spillovers of clean technology among enterprises can lead to diffusion of clean production and bring about pollution reduction [9]; (2) agglomeration can reduce the cost of governance through scale effects [10,11]; and (3) the recycling effect can be achieved in clusters and bring about pollution reduction [12]
DZs within 5 km accounted for a water quality deterioration of 0.09 to 0.1, which is consistent with previous studies that argue that agglomeration brings about more water pollution [16,42]
Summary
Development zones (DZs) are regarded as one of the most important forms of agglomeration, and an engine of regional economic development [1]. With more than two decades of development, DZs have become modern agglomerated industrial parks with attractive investment environments and advanced technology. Researchers have been controversial on the agglomeration effect raised by Chinese development zones, given many DZs are extensively developed and land consuming [1,2]. DZs have been criticized for their pollution emissions into the environment [3,4,5]. The results of research on whether agglomeration affects the environment are mixed. Some studies hold the view that it degrades the environment through concentrated discharges of polluted water and air into the neighborhood [7,8]. Others argue that agglomeration can alleviate pollution for the following reasons: (1) Spillovers of clean technology among enterprises can lead to diffusion of clean production and bring about pollution reduction [9]; (2) agglomeration can reduce the cost of governance through scale effects [10,11]; and (3) the recycling effect can be achieved in clusters and bring about pollution reduction [12]
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