Estimating the Effects of Economic Agglomeration on Haze Pollution in Yangtze River Delta China Using an Econometric Analysis

Abstract

Haze pollution, a serious livelihood and environmental issue, has hindered China’s economic development. This paper, based on the improved output density model, empirically analyzes spatial patterns and impact factors of haze pollution within the Yangtze River Delta from 2015 to 2017 by statistical and spatial econometric models. The study shows that: (1) The characteristics of haze pollution due to seasonal changes are obvious in the Yangtze River Delta region, and the situation has gradually improved. (2) The haze pollution has significant local agglomeration characteristics and spatial heterogeneity, demonstrated as significant low-level agglomerations in Hangzhou, Ningbo, and Taizhou, and high agglomerations in Chuzhou, Yangzhou, Zhenjiang, and Taizhou. The polluted area clusters around the provincial boundary, and its level gradually decreases from northwest to southeast. There is a significant spatial positive correlation and spatial spillover effect of intercity haze pollution, which will have a negative impact on the region and surrounding areas. (3) The population growth, research and development (R&D) investment, industrial structure, industrial smoke and dust emissions, and urban construction in the Yangtze River Delta have positive impacts on haze pollution, while factors, such as investment intensity of foreign direct investment (FDI), energy consumption and precipitation, have a negative impact on smog pollution. However, there is no Kuznets curve relationship between smog pollution and economic growth. By optimizing spatial distribution, incorporating production factors, and sharing pollution control infrastructure, this paper shows that economic agglomeration has an inhibitory effect on haze pollution.

The Agglomeration of Manufacturing Industry, Innovation and Haze Pollution in China: Theory and Evidence

“…All these cases demonstrate that there is only one positive zero point of (27), indicating that if g > 0, the effect of agglomeration on haze pollution is always positive before the certain positive zero point and negative after it. More specifically, the relationship between agglomeration and haze pollution is in an inverted-U shape, and the corresponding mechanisms are: first, agglomeration stimulates innovation, and innovation can reduce the haze pollution of this economy; second, through innovation, agglomeration also promotes economic growth, and economic growth causes more pollutant emissions and aggravates the haze pollution problem.…”

“…In general, the Cobb-Douglas function α represents the share of the income of labor, and a number of studies suggest that it is between 60% and 70% in China (e.g., Fève et al set α = 2/3 [35]). Thus, the coefficient of the square term (1-2α)λ/α < 0, which means function (27), is in an inverted-U shape. If g = 0, function (27) equals ρθδL, which is greater than zero, indicating that the intercept of this quadratic function is positive.…”

“…According to function (28), the images of function (27) are divided into three cases ( Figure 5, the ordinate and abscissa denote d . H/dθ and g, respectively), with respect to the following three conditions:…”

“…They found that when other factors are controlled, agglomeration aggravates haze pollution, and this effect varies among different regions of China. Ma et al [27] empirically examined the spatial pattern and influencing factor of haze pollution within the Yangtze River Delta by applying statistical and spatial econometric models. Additionally, they had similar findings regarding economic agglomeration, i.e., can inhibit haze pollution and has a spatial spillover effect.…”

Spatial Association Effect of Haze Pollution in Cheng-Yu Urban Agglomeration

“…Yan et al 16 , analyzed the temporal and spatial evolution characteristics of PM 2.5 in Jing-Jin-Ji, and found that PM 2.5 pollution in Jing-Jin-Ji area has significant spatial spillover effects. Ma et al 17 , studied the spatial characteristics of haze pollution in the Yangtze River Economic Belt and found a positive spatial correlation and significant spillover effect of haze pollution. In addition, there were many literatures that use spatial econometric model to analyze the spillover effect of haze pollution 18,19 .…”