Impact of Industrial Agglomeration on Environmental Pollution: Evidence from Yangtze River City Cluster in Jiangsu Province

Using panel data derived from 8 cities along Yangtze river in China' s Jiangsu Province, the paper analyzes the impact of industrial agglomeration on environmental pollution on the basis of elaborating their influencing mechanism, applying threshold model and drawing lessons from developed countries to make targeted recommendations. Estimated results are as follows. First, industrial agglomeration exacerbates industrial pollution emissions overall, but the negative environmental effects were weakened following Jiangsu 's entering into the new period of time. Second, FDI can significantly reduce industrial pollutant emission. Third, investment in pollution control does not fully play its role in improving environmental quality.