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The Environmental Pollution Effects of Industrial Agglomeration: A Spatial Econometric Analysis Based on Chinese City Data

Suxia Liu, Yingming Zhu, Weiqiang Wang, Yu Pei and Kuanqi Du
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Suxia Liu: Nanjing University of Science and Technology, Nanjing, China & Zhengzhou University, Zhengzhou, China.
Yingming Zhu: Nanjing University of Science and Technology, Nanjing, China
Weiqiang Wang: Zhengzhou University, Zhengzhou, China
Yu Pei: Nanjing University of Science and Technology, Nanjing, China
Kuanqi Du: Nanjing University of Science and Technology, Nanjing, China

International Journal of Agricultural and Environmental Information Systems (IJAEIS), 2019, vol. 10, issue 3, 14-29

Abstract: To analyze the environmental pollution effects elicited by industrial agglomeration, a spatial econometric model is constructed based on the Green Solow model. Using data derived from 285 Chinese cities between 2003and 2014, the global Moran'I and local bivariate LISA agglomeration map demonstrates that there is significant correlation between industrial agglomeration and industrial pollution discharge. Then, the spatial Durbin model (SDM) is built and the empirical results are as follows. First, inter-city industrial pollution discharge has a demonstration effect. Cites in the same region should take measures to cooperate to lower industrial pollution discharge. Second, the relationship between the local cities' industrial agglomeration and the local cities' industrial pollution discharge fits the inverted “U” curve. While the neighboring cities' industrial agglomeration will decrease the local cities' industrial pollution discharge. So, measures should be taken to increase the industrial agglomeration degree in the long run.

Date: 2019
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