Investigating the mechanisms among industrial agglomeration, environmental pollution and sustainable industrial efficiency: a case study in China

Yi Ren, Yuan Tian () and Chengqiu Zhang
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Yi Ren: Chongqing Technology and Business University
Yuan Tian: Chongqing Technology and Business University
Chengqiu Zhang: Chongqing Technology and Business University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2022, vol. 24, issue 11, No 1, 12467-12493

Abstract: Abstract Industrial agglomeration (IA) has greatly promoted the improvement of industrial efficiency (IE), but it has also brought serious environmental pollution (EP), which in turn affects sustainable industrial development. Therefore, this study built a theoretical derivation model including pollution output and used a vector error correction model (VECM) and three-stage simultaneous equations (3SLS) to explore the mechanisms among IA, EP and sustainable IE. The following conclusions were reached: (1) The relationship between IA and EP presents an inverted U-shape and is located on the left side of the inverted U-shape curve. IA has increased emissions of industrial sulphur dioxide, industrial soot and industrial wastewater pollutants, but is conducive to IE. Increased EP will inhibit both IA and the level of IE. (2) Both IA and low EP can enhance the level of sustainable IE. (3) IE plays a mitigating role in IA and EP; it will weaken the inhibitory effect of EP on IA and strengthen the impact of IA on EP. In the future, China should continue its industrialization process to promote the scale of IA and strictly control the discharge of industrial pollutants to reduce EP. Simultaneously, the government should encourage industrial enterprises to improve technological innovation to promote IE. IA, EP and IE form a virtuous circle that promotes the development of the industrial economy and optimizes the environment. This approach can also be applied to other regions to provide decision support for the sustainable development of industry.

Keywords: Industrial agglomeration; Environmental pollution; Industrial efficiency; Sustainable (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10668-021-01971-3

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