Abstract

Based on panel data on 285 Chinese cities from 2003 to 2012, we use a dynamic spatial panel model to empirically analyze the effect of manufacturing agglomeration on haze pollution. The results show that when economic development levels, population, technological levels, industrial structure, transportation, foreign direct investment, and greening levels are stable, manufacturing agglomeration significantly aggravates haze pollution. However, region-specific analysis reveals that the effects of manufacturing agglomeration on inter-regional haze pollution depends on the region: the effect of manufacturing agglomeration on haze pollution is the largest in the Western region, followed by the Central region, and is the least in the Eastern region. Based on the above conclusions, we put forward several specific suggestions, such as giving full play to the technology and knowledge spillover effects of manufacturing agglomeration, guiding manufacturing agglomerations in a scientific and rational way, accelerating the transformation and upgrading of manufacturing industries in agglomeration regions.

Highlights

  • Since reform and opening up, industrialization and urbanization in China has rapidly advanced.At the same time, those activities associated with manufacturing agglomeration have developed rapidly

  • By observing the results of robustness regression, when the manufacturing agglomeration index is measured by location entropy, the coefficient of manufacturing agglomeration is significantly positive at the national level, which indicates that manufacturing agglomeration has significantly aggravated haze pollution in China

  • This paper analyzes the effect of manufacturing agglomeration on haze pollution

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Summary

Introduction

Since reform and opening up, industrialization and urbanization in China has rapidly advanced. Those activities associated with manufacturing agglomeration have developed rapidly. Manufacturing agglomeration promotes regional economic development, it is, often accompanied by widespread pollution including, amongst other things, pollution of rivers and haze. The areas of high-frequency haze pollution in China are mainly distributed in the Beijing-Tianjin-Hebei region, and the Yangtze River Delta [4], the very areas that are the principal areas of China’s manufacturing agglomerations. Few scholars have studied the relationship between occurrence and effects of haze pollution from the perspective of manufacturing agglomeration. This is a key issue to be discussed and studied in this paper. The rest of this article is arranged as follows: Section 2 is a review of the literature; Section 3 introduces the model specifications and explains the variable and data sources; Section 4 describes empirical results and discussion; and Section 5 draws conclusions and provides some recommendations

Literature Review
The Establishment of a Spatial Econometric Model
Variable Description
Data Sources
Regression Results and Analysis
Analysis of Regional Regression Results
Robustness Test
Conclusions
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