Influence of Different Industrial Agglomeration Modes on Eco-Efficiency in China

Abstract

It is a key issue for the Chinese government to improve eco-efficiency and realize green development. As a spatial organization mode of industrial labor division, industrial agglomeration has a complex impact on eco-efficiency. However, it is still debatable which industrial agglomeration modes have a positive impact on eco-efficiency. This paper employs a panel threshold model, enterprise micro-level data, and relevant economic environment data from 283 cities in China from 2004 to 2012. It tests the nonlinear effects of specialized, related diversified, and unrelated diversified agglomeration on industrial eco-efficiency. The results show that the impact of specialized and related diversified agglomeration on industrial eco-efficiency is first inhibited and then promoted. The unrelated diversified agglomeration has a significantly negative impact on industrial eco-efficiency, but the negative impact weakens when agglomeration reaches a certain level. Furthermore, the impact of the three agglomeration modes on industrial eco-efficiency depends on city size. The impact of specialized agglomeration on industrial eco-efficiency is insignificant in small- and some medium-sized cities, but it has a significant inhibitory effect on industrial eco-efficiency when the city surpasses medium size. The role of related diversified agglomeration in promoting industrial eco-efficiency is further enhanced with the growth of city size. The impact of unrelated diversified agglomeration on industrial eco-efficiency gradually changes from negative to positive, but it plays a promoting role only when the city reaches the scale of super-large and mega-cities. Finally, this paper suggests that policymakers should formulate differentiated agglomeration policies according to changes in industrial agglomeration level or city size to improve industrial eco-efficiency.