Impact of Economic Agglomeration on Carbon Emission Intensity in China ―A Spatial Analysis Using Provincial Panel Data―
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Global warming and its far-reaching impacts have sparked intense global discussions about carbon emissions and raised a need for ambitious actions and commitments of major economies. In this context, China currently faces the dual challenge of maintaining economic growth and stability while transitioning to low-carbon society. In China, economic agglomeration, including both industrial and urban population agglomeration, has been intensified as a strategic approach to stimulate regional growth. However, existing research does not adequately explore the relationship between industrial and population agglomeration and carbon emissions. To fill this research gap, we analyze panel data from 30 Chinese provinces from 2003 to 2019, employing a Spatial Durbin Model (SDM) to examine the impact of population and industrial agglomeration on carbon emission intensity considering spatial effects. Our empirical results reveal an inverted U-shaped relationship between industrial agglomeration and carbon emission intensity, whereas population agglomeration exhibits a U-shaped correlation. Both demonstrate significant spatial spillover effects. Based on these findings, our study underscores the need for a clear understanding of the complex interplay between industrial activities, population dynamics, and technological advancements in shaping carbon emissions, in order to design more effective policies to promote low-carbon economic development in China.
Abstract
Global warming and its far-reaching impacts have sparked intense global discussions about carbon emissions and raised a need for ambitious actions and commitments of major economies. In this context, China currently faces the dual challenge of maintaining economic growth and stability while transitioning to low-carbon society. In China, economic agglomeration, including both industrial and urban population agglomeration, has been intensified as a strategic approach to stimulate regional growth. However, existing research does not adequately explore the relationship between industrial and population agglomeration and carbon emissions. To fill this research gap, we analyze panel data from 30 Chinese provinces from 2003 to 2019, employing a Spatial Durbin Model (SDM) to examine the impact of population and industrial agglomeration on carbon emission intensity considering spatial effects. Our empirical results reveal an inverted U-shaped relationship between industrial agglomeration and carbon emission intensity, whereas population agglomeration exhibits a U-shaped correlation. Both demonstrate significant spatial spillover effects. Based on these findings, our study underscores the need for a clear understanding of the complex interplay between industrial activities, population dynamics, and technological advancements in shaping carbon emissions, in order to design more effective policies to promote low-carbon economic development in China.
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