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Is producer services agglomeration a “new engine” for urban green economic development? an econometric analysis of Chinese cities

Author

Listed:
  • Jinling Yan

    (Xinjiang Institute of Technology
    Xinjiang University
    Center for Innovation Management Research of Xinjiang)

  • Junfeng Zhao

    (Xinjiang University
    Chongqing Technology and Business University
    Center for Innovation Management Research of Xinjiang)

  • Xiaodong Yang

    (Xinjiang Institute of Technology
    Xinjiang University
    Center for Innovation Management Research of Xinjiang)

  • Zhimeng Zhu

    (Xinjiang Institute of Technology
    Xinjiang University)

  • Qiying Ran

    (Center for Innovation Management Research of Xinjiang
    Shanghai Business School)

Abstract

Green economic development is an effective tactic for China to cope with the predicament of resources and the environment. As “smoke-free industries”, producer services are becoming the main contributors to urban green economic development (UGED). The paper adopts the super-efficiency EBM model to estimate the UGED index of 268 Chinese cities from 2005 to 2019. Based on the theoretical analysis, econometric models are constructed to systematically test how the specialized and diversified agglomeration of producer services impacts UGED. The findings reveal that both agglomeration modes considerably enhance UGED in the local area and its surroundings. Diversified agglomeration exerts a stronger radiation and promotion effect than specialized agglomeration. In addition, the impact of the two agglomeration modes on UGED demonstrates pronounced heterogeneity in urban scales, economic development stages, and industries. Furthermore, mechanism studies suggest that agglomeration substantially boosts UGED by improving human capital, technological innovation, and upgrading industrial structure. As such, our findings serve as an empirical basis for understanding the mechanism of the impact of PSA on UGED and also offer significant insight for local governments to adopt differentiated industrial policies to enhance the positive agglomeration effect on UGED.

Suggested Citation

  • Jinling Yan & Junfeng Zhao & Xiaodong Yang & Zhimeng Zhu & Qiying Ran, 2024. "Is producer services agglomeration a “new engine” for urban green economic development? an econometric analysis of Chinese cities," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17157-17183, July.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03331-9
    DOI: 10.1007/s10668-023-03331-9
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