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How does financial and manufacturing co-agglomeration affect environmental pollution? Evidence from China
Wenna Fan1, Feng Wang1, Siyu Liu1
1School of Economics and Management, China University of Mining and Technology, Xuzhou, Jiangsu, 221116, China.
Journal of Environmental Management
|November 24, 2022
Summary
China's financial and manufacturing co-agglomeration significantly increases environmental pollution. Industrial upgrading plays a key role, but technological progress needs strengthening for green development.
Area of Science:
- Environmental Science
- Economics
- Urban Studies
Background:
- Financial and manufacturing sectors are increasingly co-agglomerating.
- Understanding this integration's environmental impact is crucial for sustainable development in China.
- Existing research often overlooks the nuanced mechanisms involved.
Purpose of the Study:
- To investigate the direct influence and mechanism of financial and manufacturing co-agglomeration on environmental pollution in China.
- To explore the mediating role of industrial upgrading and the threshold effect of credit scale.
- To provide insights for green development strategies.
Main Methods:
- Panel data regression model.
- Analysis of mediating and threshold effects.
- Data from 285 prefecture-level cities in China (2009-2019).
Main Results:
- Higher co-agglomeration significantly increases environmental pollution.
- Industrial upgrading (secondary to tertiary industries) acts as a significant intermediary.
- Credit scale exhibits a nonlinear threshold effect, with expansion contributing to environmental protection.
Conclusions:
- Financial and manufacturing co-agglomeration exacerbates environmental pollution.
- Industrial structure optimization and credit scale expansion can mitigate pollution.
- Strengthening the link between technological progress and environmental protection is vital for sustainable integration.
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