RESOURCES AND ENVIRONMENT IN THE YANGTZE BASIN >> 2019, Vol. 28 >> Issue (04): 794-804.doi: 10.11870/cjlyzyyhj201904006

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Does Industrial Agglomeration Aggravate Environmental Pollution: From A Perspective of Foreign Direct Investment

YUAN Hua-xi1, 3, LIU Yao-bin1, 2, HU Sen-lin4, FENG Yi-dai1   

  1. In order to have a better understand of the environmental stress formation in China, we strive to clarify how industrial agglomeration and foreign direct investment (FDI) influence environmental pollution. The current environmental problems depend on both regional cooperation and spatial spillover effect. In this paper, we introduce an asymmetric economic distance matrix, which is reflects the impacts of natural factors and socio-economic factors, into a spatial econometric model. We use empirical model to explore how FDI affects the impact of industrial agglomeration on environmental pollution. Our empirical results show that: (i) There exists significant spatial dependence in China’s provincial environment pollution, i.e, the environmental pollution in the neighboring provinces will aggravate the environmental pollution. (ii) Although industrial agglomeration contributes to the emission reduction of industrial sulfur dioxide per capita, it has no significant impact on the chemical oxygen demand in industrial wastewater per capita. On the contrary, it can increase carbon dioxide emissions per capita. (iii) When FDI is taken into account, with 1% increase in industrial agglomeration, the industrial sulphur dioxide emissions per capita is increase by 0428%, the chemical oxygen demand in industrial wastewater per capita by 1381%, and the carbon dioxide emissions per capita by 0240%. We also test the robustness and endogeneity of the empirical model. Finally, some relevant policy recommendations are accordingly proposed.
  • Online:2019-04-20 Published:2019-05-10

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