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

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.