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Analyzing the mediating role of industrial structure in the spatial spillover effects of financial agglomeration on carbon emission and regional heterogeneity

  • Synergistic Effect of Carbon - Water - Energy - Food – Economy Under “Carbon Neutrality Goal”
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Abstract

In China, achieving financial agglomeration necessitates both the gathering of financial resources and the reduction of carbon emissions and the interrelation between these two goals is significant. In this research, sophisticated econometric models are applied to examine the correlation between financial agglomeration and per capita carbon emissions in China, such as spatial econometric, mixed OLS, and stationary panel models. The research sample is composed of data from 30 provinces and cities in China from 2010 to 2020 and examines both temporal and spatial distributions of these two factors and how they influence each other. The direct effect of financial agglomeration on carbon emission is analyzed through spatial panel model, while indirect effect is analyzed by examining the role of industrial structure upgrading as a mediating variable through mediating effect model. This study also looks at how these effects vary regionally, both directly and indirectly. Generally, the study discovered that financial agglomeration and per capita carbon emissions have significantly positive spatial autocorrelation coefficient in all provinces and cities in China, indicating path dependence and spatial spillover. In terms of distribution trends, financial agglomeration shows an upward trend over time, while per capita carbon emissions grew faster in the early stage, but gradually achieves a steady decrease in recent years. In terms of the impact of financial agglomeration on carbon emissions, the relationship between financial agglomeration and per capita carbon emissions is in the form of “inverted U-shaped.” Financial agglomeration indirectly influences the intensity of per capita carbon emissions through the advanced industrial structure, which acts as a mediator. In the test of industrial structure serving as a mediating variable, different regions exhibit different impacts due to regional heterogeneity, with a clear distinction between the central region and the eastern and western regions.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Funding

This paper is supported by “Research on the Dynamic Value Evaluation of Agricultural Biological Assets, Mortgage Financing Model and Risk Management Policy,” National Natural Science Foundation of China (NSFC), Jan 2023–Dec 2026, No. 72273105. Sponsor and host: Jianchao Luo. This paper is also supported by”Research on the Effectiveness Evaluation, Risk Control and System Construction of the Agricultural Credit Guarantee Policy,” National Natural Science Foundation of China (NSFC), Jan 2019–Dec 2022, No. 71873100. Sponsor and host: Jianchao Luo. This paper is also supported by “Rural revitalization financial policy innovation team,” Chinese Universities Scientific Fund, Jan 2022–Dec 2023, No. 2452022074. Sponsor and host: Jianchao Luo. This paper is also supported by “Research on the Policy Orientation and Implementation Path of Financial Empowerment of Rural Revitalization,” the Soft Science Project of the Central Agricultural Office and the Rural Revitalization Expert Advisory Committee of the Ministry of Agriculture and Rural Affairs, May 31, 2022–May 31, 2023, No. rkx20221801. Sponsor and host: Jianchao Luo.

Author information

Authors and Affiliations

  1. College of Economics and Management, Northwest A&F University, Yangling, 712100, People’s Republic of China

    Bingjing Mei & Jianchao Luo

  2. International Business School, Shaanxi Normal University, Xi’an, 710119, China

    Muhammad Abu Sufyan Ali

  3. Department of Weed Science and Botany, The University of Agriculture, Peshawar, Pakistan

    Imtiaz Khan

Authors
  1. Bingjing Mei
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  2. Muhammad Abu Sufyan Ali
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  3. Imtiaz Khan
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  4. Jianchao Luo
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Contributions

Bingjing Mei: conceptualization, data curation, investigation, modeling, formal analysis, writing original draft. Muhammad Abu Sufyan Ali: data curation, investigation, review, and editing. Imtiaz Khan: data curation, investigation, formal analysis, review, and editing. Jianchao Luo: funding acquisition, project administration, and supervision.

Corresponding author

Correspondence to Jianchao Luo.

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Mei, B., Ali, M.A.S., Khan, I. et al. Analyzing the mediating role of industrial structure in the spatial spillover effects of financial agglomeration on carbon emission and regional heterogeneity. Environ Sci Pollut Res (2023). https://doi.org/10.1007/s11356-023-26786-9

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