The effect of industrial agglomeration on China’s carbon intensity: Evidence from a dynamic panel model and a mediation effect model

Abstract

Low-carbon economy is one of the important tasks of economic and social development in the world, but the carbon reduction effect of industrial agglomeration has not been fully studied. It is necessary to explore the relationship between China’s industrial agglomeration and carbon intensity and put forward some insightful policy implications for China to promote green industrial agglomeration and speed up the process of green technological innovation. This paper incorporates technological progress into the analysis framework of industrial agglomeration and carbon emissions and employs a dynamic panel model and a mediation effect model to confirm the influence mechanism of industrial agglomeration on carbon emissions. The main findings are as follows: (1) There is an inverted U relationship between industrial agglomeration and carbon emissions; (2) Industrial agglomeration enhances the reduction of carbon emissions through technological progress.