Industrial coagglomeration, technological innovation, and environmental pollution in China: Life-cycle perspective of coagglomeration

The coagglomeration of manufacturing and producer service industries and technological innovation plays an essential role in China's booming economy. Considering the coordinated development goal of the environment and the economy, from the life-cycle perspective of industrial coagglomeration, this study empirically examines whether industrial coagglomeration has dynamic influences on environmental pollution and verifies the direct and indirect impact mechanisms based on the panel threshold model and mediation model. Panel data for China's 30 provinces from 2008 to 2019 are employed. The results suggest that the impact of industrial coagglomeration on environmental pollution is positive and has significant threshold effects. As industrial coagglomeration deepens, its aggravating effect on environmental pollution presents an inverted S-shaped trend. The impact of industrial coagglomeration on technological innovation is negative. With the deepening of coagglomeration, the adverse effect gradually decreases. Additionally, technological innovation is conducive to the reduction of environmental pollution. It acts as a vital mediator between industrial coagglomeration and environmental pollution, and its mediating effect varies with the dynamic evolution of industrial coagglomeration. These conclusions show the importance of increasing industrial coagglomeration efficiency and stimulating the effective play of positive environmental and innovative externalities to realize the sustainable pursuit of economic and ecological benefits.