Research on the influence of manufacturing agglomeration modes on regional carbon emission and spatial effect in China

This paper estimates the impact and spatial effects of manufacturing agglomeration modes on regional carbon emission. We use panel data for 28 provinces from the year of 2007-2016 in China. We find that specialized agglomeration of manufacturing industry generates a significant influence on local carbon emissions, but no obvious spillover effect on the carbon emission level of the surrounding areas. Diversified agglomeration of the manufacturing industry is not an influence on local carbon emissions, but has significant negative spillover effects on neighborhood regions. Additionally, we also find that increasing affluence and government intervention increase local carbon emission, while trade openness reduces local carbon emission. Population has a negative spillover effect. Finally, we draw policy implications for local government planner.