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Industrial clusters and carbon emission reduction: evidence from China

Author

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  • Ye Liu

    (Zhejiang University of Technology)

  • Yiyun Wu

    (Zhejiang University of Finance and Economics)

  • Xiwei Zhu

    (Zhejiang University)

Abstract

In the context of carbon peaking and neutrality goals, this paper examines the impact of industrial clusters on firms’ carbon emissions based on listed manufacturing firms in China from 2008 to 2020. To avoid the endogeneity issue, we constructed an industrial cluster database ten years earlier than the sample period. The results of the empirical analysis suggest that industrial clusters are conducive to decreasing carbon emissions. The stronger the industrial cluster, the lower the carbon intensity. Examining the channel reveals that industrial clusters have an emission reduction effect through digital transformation. The heterogeneity analysis demonstrates that the variations in industrial clusters, including pollutant emissions, energy intensity, and energy consumption structure, significantly affect a firm's carbon emission reduction performance. In addition, environmental policies and the internal and external green development impetus of firms also affect emission reduction behavior. Our findings provide the rationale for governments to promote green transformation and enhance digital competitiveness through industrial cluster development.

Suggested Citation

  • Ye Liu & Yiyun Wu & Xiwei Zhu, 2024. "Industrial clusters and carbon emission reduction: evidence from China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(2), pages 557-597, August.
    • Handle: RePEc:spr:anresc:v:73:y:2024:i:2:d:10.1007_s00168-024-01268-z
    DOI: 10.1007/s00168-024-01268-z
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    More about this item

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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