Can industrial collaborative agglomeration improve carbon emission efficiency? Empirical evidence from China

Against the backdrop of low-carbon development, it is imperative to cultivate a modernized industrial system and new development model. Industrial collaborative agglomeration (ICA) between manufacturing and producer services may offer an opportunity to aid carbon reduction in this scenario. Using balanced panel data of China's 30 provinces and municipalities from 2008 to 2019, this paper attempts to investigate the influences of ICA on carbon emission efficiency (CEE), its heterogeneous effects, impact mechanisms, and spillover effects. Our main findings can be concluded as follows: (1) There is a U-shaped relationship between ICA and CEE; namely, ICA will inhibit first and then promote CEE. (2) The heterogeneity results further indicate that this U-shaped relationship is significant in the eastern area while there exists an inverted U-shaped relationship between ICA and CEE in the western area; however, the influence of ICA on CEE is not significant in the central area. (3) More deeply, the mechanism identification uncovers that industrial structure upgrading and green technological innovation are important channels through which ICA affects CEE. (4) Importantly, we unfold that ICA in the local area has spatial spillover effects; namely, it will influence CEE in neighboring areas, which also presents a U-shaped relationship. These findings provide not only new insights into understanding the environmental effects of ICA but also helpful inspiration for regional policymakers to scientifically formulate industrial development policies and effectively implement carbon emission control actions.