Abstract

This paper explores the impacts of industrial collaborative agglomeration on industrial sulfur dioxide intensity from a spatiotemporal perspective based on panel data on the 284 prefecture-level cities from 2003 to 2019, with systematic consideration of the underlying mechanism of channels and actions. The empirical results show that industrial co-agglomeration significantly intensifies industrial SO2 intensity, especially with increasing agglomeration. In addition, its positive spatial spillover effects are established in geographical proximity to the city. Furthermore, the channel analysis shows that the industrial structure path, industrial efficiency path, and industrial scale path account for a sharp increase in industrial SO2 intensity. The market forces reverse and moderate this exacerbating process more significantly than the government does, which provides evidence for the importance of pursuing a dynamic equilibrium between them. Finally, there exist heterogeneous effects across cities with different administrative levels, innovation capacities, and macropolicies of special emission limits for air pollutant policy. While arguing for the environmental pollution effects of industrial co-agglomeration, this paper also provides solid support and a new perspective for promoting sustainable economic development and achieving win-win economic and environmental benefits.

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