Haze pollution is one of the most concerned environmental issue, it is of great significance to control haze pollution without affecting economic development. Using the panel data composed of PM2.5 concentration and other data from 278 cities in China between 2003 to 2016, this paper empirically investigates the impact of urban innovation on haze pollution and its transmission mechanism. Based on the fixed effect model, the research finds that the increase of urban innovation significantly reduced haze pollution. The result still holds after dealing with possible endogenous problems. Energy consumption and industrial agglomeration are two important transmission channels through which urban innovation affects haze pollution. Furthermore, time heterogeneity analysis shows that the negative effect of urban innovation on haze pollution increases with time. Spatial heterogeneity analysis shows that urban innovation has a greater mitigation effect on haze pollution in eastern cities than in central and western cities in China. This paper indicates that technological innovation as the main driving force for development, can provide strong support for China to achieve the aims of improving the ecological environment.

Free trade zones (FTZ) are designated areas for promoting trade openness and investment facilitation. In China, FTZs are also regarded as “green areas” in which planning actions and institutional innovations are implemented, and there is a commitment to promoting urban green and healthy development. Given that green total factor productivity (GTFP) is an important measure of a city’s health and green performance, this study exploits the difference-in-differences method to explore the impact of pilot FTZs on urban GTFP in 280 cities in China for the period between 2005 and 2017. The results show that the green areas positively contributed to the growth of GTFP. Moreover, the outcome holds with robustness tests. Statistically, the positive effect emerged in cities during the first three years after introducing the initiative, with the effect disappearing afterward. It also had a strong positive impact in the central and western regions and in large and medium-sized cities, while the influence remained insignificant in the remaining areas in China. Furthermore, the paper also reveals that the promotion of foreign direct investment and industrial structure upgrading are the primary channels through which the positive relationship between pilot FTZs and GTFP is established.

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Haze pollution is one of the most concerned environmental issue, it is of great significance to control haze pollution without affecting economic development. Using the panel data composed of PM2.5 concentration and other data from 278 cities in China between 2003 to 2016, this paper empirically investigates the impact of urban innovation on haze pollution and its transmission mechanism. Based on the fixed effect model, the research finds that the increase of urban innovation significantly reduced haze pollution. The result still holds after dealing with possible endogenous problems. Energy consumption and industrial agglomeration are two important transmission channels through which urban innovation affects haze pollution. Furthermore, time heterogeneity analysis shows that the negative effect of urban innovation on haze pollution increases with time. Spatial heterogeneity analysis shows that urban innovation has a greater mitigation effect on haze pollution in eastern cities than in central and western cities in China. This paper indicates that technological innovation as the main driving force for development, can provide strong support for China to achieve the aims of improving the ecological environment.

No abstract