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How does producer services’ agglomeration promote carbon reduction?: The case of China

Jun Zhao, Xiucheng Dong and Kangyin Dong ()

Economic Modelling, 2021, vol. 104, issue C

Abstract: This study tests how producer services' agglomeration (PSA) affects carbon dioxide (CO2) emissions in China by using balanced panel data of China's 30 provinces from 2003 to 2017 to analyze the three effects (i.e., scale, technique, and composition) of PSA on CO2 emissions. Furthermore, by dividing China's 30 provinces into three regions, we further explore the potential regional heterogeneity in the effects between these two variables. The empirical results indicate that an increase in PSA can effectively mitigate the greenhouse effect in China. PSA increases CO2 emissions by improving economic scale; however, strengthening technology and knowledge spillover effects and optimizing industrial structure can alleviate CO2 emissions. Although PSA helps reduce CO2 emissions in all three regions, we find significant regional heterogeneity. Our results imply that promoting the development of the producer services industry is essential to accelerate the realization of “carbon neutrality.”

Keywords: CO2 emissions; Producer services' agglomeration; Mediating effect; Heterogeneous analysis; China (search for similar items in EconPapers)
JEL-codes: C31 Q54 R12 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:104:y:2021:i:c:s0264999321002133

DOI: 10.1016/j.econmod.2021.105624

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