Influence mechanisms and spatial spillover effects of industrial agglomeration on carbon productivity in China's Yellow River Basin

Abstract

The ecological protection and high-quality development of the Yellow River Basin have become major national strategies in China. Therefore, reducing carbon emissions in the Yellow River Basin through efficient industrial agglomeration is necessary for achieving the goals of carbon peak by 2030 and carbon neutrality by 2060. The Yellow River Basin is an important base for energy, chemicals, raw materials, and industry in China, making it important to study the effects of different industrial agglomeration types on carbon productivity from the perspective of agglomeration externalities. Therefore, taking 2009-2019 panel data for prefecture-level cities in the Yellow River Basin, this study uses a spatial Durbin model to investigate the spatial spillover effects of industrial agglomeration (i.e., specialized, diversified, and competitive agglomeration) on carbon productivity. Furthermore, the moderating effects of urbanization level and environmental regulation are analyzed. The results reveal, first, the existence of spatial correlation in carbon productivity across different cities in the Yellow River Basin. Second, diversified and competitive agglomeration significantly increase carbon productivity, although competitive agglomeration has beggar-thy-neighbor spillover effects. Meanwhile, the effect of specialized agglomeration is not significant. Third, the effects of different types of industrial agglomeration differ significantly between cities in different locations and with different resource endowments. Fourth, urbanization level and environmental regulation have different moderating effects in the relationship between different types of industrial agglomeration and carbon productivity. These findings provide evidence for further developing rational industrial agglomeration patterns to enhance carbon productivity in the Yellow River Basin.

Keywords: Carbon productivity; Industrial agglomeration; Moderating effects; Spatial spillover effects; Yellow River Basin.