The effect of manufacturing agglomerations on smog pollution

Jiayu Fang, Xue Tang, Rui Xie and Feng Han

Structural Change and Economic Dynamics, 2020, vol. 54, issue C, 92-101

Abstract: Manufacturing agglomerations are among the most important urban economic activities. The spatial agglomeration of production factors not only drives the growth of urban economy, but also affects its ecological environment. This study investigates the mechanism through which manufacturing agglomerations affect urban smog pollution from the aspects of economies of scale, technology spillovers, and spatial spillover effects. Based on an STIRPAT model, we employ panel data from 2003 to 2013 of 283 Chinese cities to estimate the impact of manufacturing agglomerations on smog pollution. We find that manufacturing agglomerations decrease smog pollution in local city as well as in neighboring cities, due to technology spillovers. Furthermore, cities with different scales witness different improvement effects—only when the city scale is within a certain range can smog pollution be improved by manufacturing agglomerations. Additionally, the larger the scale of the city, the greater the improvement.

Keywords: Manufacturing agglomeration; EG index; Smog pollution; STIRPAT model (search for similar items in EconPapers)
JEL-codes: C33 R11 R58 (search for similar items in EconPapers)
Date: 2020
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:streco:v:54:y:2020:i:c:p:92-101

DOI: 10.1016/j.strueco.2020.04.003

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