Does producer services agglomeration affect environmental quality? New findings from a spatial spillover effect analysis

Abstract

This study investigates the impact of producer service agglomeration on environmental quality (EQ) using the spatial Durbin model to analyze China’s provincial data from 2003 to 2017. The results reveal China’s EQ’s spatial positive correlation and local agglomeration characteristics. The specialized agglomeration (SA) of producer services can inhibit the EQ of local and neighboring regions; the diversified agglomeration (DA) of producer services does the opposite. Regional heterogeneity was found in eastern China, where SA inhibits the EQ of local and neighboring regions, and DA improves the EQ of local environment. In central China, SA can improve the EQ, but DA is not conducive to environmental improvement. In the western region, SA and DA have no significant impact on the EQ of the region nor on its neighboring regions. To achieve sustainable development, a series of policy recommendations has been proposed.

Keywords:

• environmental quality
• diversified agglomeration
• producer services agglomeration
• specialized aggregation
• sustainable development

Notes

1 This study divides eastern, central, and western China according to geographical location. Municipalities and provinces in eastern China include Beijing, Tianjin, Hebei, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian, Guangdong, Hainan, and Liaoning. Provinces in central China include Shanxi, Henan, Anhui, Hubei, Jiangxi, Hunan, Jilin, and Heilongjiang. Municipalities and provinces in western China include Shannxi, Sichuan, Yunnan, Guizhou, Guangxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia, and Chongqing.

Additional information

Funding

This work was supported by Major Program of China National Social Science Foundation, Grant/Award Number: 20&ZD092; China Postdoctoral Science Foundation, Grant/Award Number: 2021M691517; Jiangsu Social Science Fund, Grant/Award Number: 19EYB07.