Impact of Collaborative Agglomeration of Manufacturing and Producer Services on Air Quality: Evidence from the Emission Reduction of PM2.5, NOx and SO2 in China

Industrial agglomeration is a major source of regional economic development and the main pattern enterprises employ after having developed to certain stage. also affects emissions air pollutants in production. Based on provincial panel data for China from 2006 2019, this paper introduces full generalized least squares (FGLS) econometrics model. By considering spatial correlation, potential endogenous problem has been controlled using instrumental variable effects co-agglomeration manufacturing producer services three pollutants, i.e., SO2, PM2.5, NOx, have empirically estimated. The empirical results show that: (1) increases emission PM2.5 air, while reduce it. Moran correlation index test showed that SO2 NOx had no significant correlation. (2) manufacturing, services, exert most central western China. This probably because availability basic natural resources these areas. (3) energy consumption structure mediates effect human capital emissions. results, policy suggestions improve atmospheric environment during process industrial are proposed.