Abstract
We looked at the long-term and short-term diversified relationships between industrial agglomeration, aggregate energy consumption, residential construction sector growth, and air pollution in China’s 30 provincial units from 2004 through 2020. We contributed to the existing knowledge by calculating a holistic air pollution index (API) and applying advanced methods. We also augmented the Kaya identity by including industrial agglomeration and residential construction sector growth in the baseline framework. Based on empirical results: First, we revealed long-term stability among our covariates through panel cointegration analysis. Second, we uncovered a positive bilateral relationship between residential construction sector growth and industrial agglomeration in the long and short term. Third, we unfolded a unilateral positive correlation emerging from aggregate energy consumption to API, displaying the greatest influence in the east zone of China. Fourth, we observed a unilateral positive connection stemming from industrial agglomeration and residential construction sector growth to aggregate energy consumption and API in the long- and short-term dimensions. Finally, the linking nature was homogeneously prevailing across the long term and short term; however, the long-term impact size outweighed that of the short term. Given our empirical results, useful policy insights are discussed to provide the readers with a take-home message for substantiating sustainable development goals.
This is a preview of subscription content, log in via an institution to check access.
Source: NBSC
Source: NBSC
Source: NBSC
Similar content being viewed by others
Data availability
All data generated or analyzed during this study are included in this article.
References
Abul SJ, Satrovic E (2022) Revisiting the environmental impacts of railway transport: does EKC exist in south-eastern Europe? Polish J Environ Stud 31:539–549. https://doi.org/10.15244/pjoes/141329
Afshan S, Ozturk I, Yaqoob T (2022) Facilitating renewable energy transition, ecological innovations and stringent environmental policies to improve ecological sustainability: evidence from MM-QR method. Renew Energy 196:151–160. https://doi.org/10.1016/j.renene.2022.06.125
Ahmad M, Cem I, Jabeen G, et al (2021a) Heterogeneous links among urban concentration, non-renewable energy use intensity, economic development, and environmental emissions across regional development levels. Sci Total Environ 765:. https://doi.org/10.1016/j.scitotenv.2020.144527
Ahmad M, Khan Z, Khalid M, Jabeen G (2021b) Do rural-urban migration and industrial agglomeration mitigate the environmental degradation across China’ s regional development levels? Sustain Prod Consum 27:679–697. https://doi.org/10.1016/j.spc.2021.01.038
Ahmad M, Satrovic E (2023) Relating fiscal decentralization and financial inclusion to environmental sustainability : criticality of natural resources. J Environ Manage 325:116633. https://doi.org/10.1016/j.jenvman.2022.116633
Ahmad M, Wu Y (2022a) Combined role of green productivity growth, economic globalization, and eco-innovation in achieving ecological sustainability for OECD economies. J Environ Manage 302:113980. https://doi.org/10.1016/j.jenvman.2021.113980
Ahmad M, Wu Y (2022b) Natural resources, technological progress, and ecological efficiency: does financial deepening matter for G-20 economies ? Resour Policy 77:102770. https://doi.org/10.1016/j.resourpol.2022.102770
Ahmad M, Zhao Z, Li H (2019) Revealing stylized empirical interactions among construction sector, urbanization, energy consumption, economic growth and CO2 emissions in China. Sci Total Environ 657:1085–1098. https://doi.org/10.1016/j.scitotenv.2018.12.112
Ahmad M, Zhu X, Wu Y (2022) The criticality of international tourism and technological innovation for carbon neutrality across regional development levels. Technol Forecast Soc Change 182:121848. https://doi.org/10.1016/j.techfore.2022.121848
Ali U, Guo Q, Nurgazina Z, et al (2023) Heterogeneous impact of industrialization, foreign direct investments, and technological innovation on carbon emissions intensity: evidence from Kingdom of Saudi Arabia. Appl Energy 336:120804. https://doi.org/10.1016/j.apenergy.2023.120804
Breusch ATS, Pagan AR (1980) The Lagrange multiplier test and its applications to model specification in econometrics. Rev Econ Stud 47:239–253
Chudik A, Mohaddes K, Pesaran MH, Raissi M (2015) Long-run effects in large heterogenous panel data models with cross-sectionally correlated errors. Fed Reserv Bank Dallas, Glob Monet Policy Inst Work Pap. https://doi.org/10.24149/gwp223
Damrah S, Satrovic E, Atyeh M, Shawtari FA (2022) Employing the panel quantile regression approach to examine the role of natural resources in achieving environmental sustainability: does globalization create some difference? Mathematics 10:1–19. https://doi.org/10.3390/math10244795
Dong Q, Lin Y, Huang J, Chen Z (2020) Has urbanization accelerated PM2.5 emissions? An empirical analysis with cross-country data. China Econ Rev 59:101381. https://doi.org/10.1016/j.chieco.2019.101381
Erol I, Unal U (2015) Role of construction sector in economic growth: new evidence from Turkey. Munich Pers RePEc Arch Pap 67. https://doi.org/10.5897/JAERD12.088
Godil DI, Sharif A, Ali MI, et al (2021) The role of financial development, R&D expenditure, globalization and institutional quality in energy consumption in India: new evidence from the QARDL approach. J Environ Manage 285:112208. https://doi.org/10.1016/j.jenvman.2021.112208
Guo W, Atchike DW, Ahmad M et al (2023) Modeling linkages among urban agglomeration, construction industry, non-renewable energy, and zero-carbon future. Processes 11:1040
Guo X, Fang C (2022) Spatio-temporal interaction heterogeneity and driving factors of carbon emissions from the construction industry in China. Environ Sci Pollut Reshttps://doi.org/10.1007/s11356-022-24200-4
Hassan ST, Wang P, Khan I, Zhu B (2023) The impact of economic complexity, technology advancements, and nuclear energy consumption on the ecological footprint of the USA: towards circular economy initiatives. Gondwana Res 113:237–246. https://doi.org/10.1016/j.gr.2022.11.001
He X, Khan S, Ozturk I, Murshed M (2023) The role of renewable energy investment in tackling climate change concerns: environmental policies for achieving SDG-13. Sustain Dev 1–14. https://doi.org/10.1002/sd.2491
Hou J, Hou Y, Wang Q, Yue N (2022) Can industrial agglomeration improve energy efficiency? Empirical evidence based on China’s energy-intensive industries. Environ Sci Pollut Res 29:80297–80311. https://doi.org/10.1007/s11356-022-21429-x
Hubert M, Vanden BK (2003) Robust methods for partial least squares regression. J Chemom 17:537–549. https://doi.org/10.1002/cem.822
IEA (2021) International energy agency. In: GHG Emiss. from Energy. https://www.iea.org/data-and-statistics/data-product/greenhouse-gas-emissions-from-energy. Accessed 21 Oct 2021
IPCC (2022) Intergovernmental panel on climate change
Jahanger A, Ozturk I, Chukwuma Onwe J, et al (2023) Do technology and renewable energy contribute to energy efficiency and carbon neutrality? Evidence from top ten manufacturing countries. Sustain Energy Technol Assessments 56:103084. https://doi.org/10.1016/j.seta.2023.103084
Jia W, Li L, Lei Y, Wu S (2023) Synergistic effect of CO2 and PM2.5 emissions from coal consumption and the impacts on health effects. J Environ Manage 325:116535. https://doi.org/10.1016/j.jenvman.2022.116535
Jiang R, Liu B (2023) How to achieve carbon neutrality while maintaining economic vitality: an exploration from the perspective of technological innovation and trade openness. Sci Total Environ 868:161490. https://doi.org/10.1016/j.scitotenv.2023.161490
Jiang T, Li S, Yu Y, Peng Y (2022a) Energy-related carbon emissions and structural emissions reduction of China’s construction industry: the perspective of input–output analysis. Environ Sci Pollut Res 29:39515–39527. https://doi.org/10.1007/s11356-021-17604-1
Jiang Y, Zhang Z, Xie G (2022b) Emission reduction effects of vertical environmental regulation: capacity transfer or energy intensity reduction? Evidence from a quasi-natural experiment in China. J Environ Manage 323:116180. https://doi.org/10.1016/j.jenvman.2022.116180
Jonek-Kowalska I (2022) Towards the reduction of CO2 emissions. Paths of pro-ecological transformation of energy mixes in European countries with an above-average share of coal in energy consumption. Resour Policy 77:102701. https://doi.org/10.1016/j.resourpol.2022.102701
Kao C (1999) Spurious regression and residual-based tests for cointegration in panel data. J Econom 90:
Kaya Y, Yokobori K (1998) Environment, energy and economy: strategies for sustainability
Khan I, Hou F, Le HP, Ali SA (2021) Do natural resources, urbanization, and value-adding manufacturing affect environmental quality? Evidence from the top ten manufacturing countries. Resour Policy 72:102109. https://doi.org/10.1016/j.resourpol.2021.102109
Khan I, Zakari A, Ahmad M et al (2022a) Linking energy transitions, energy consumption, and environmental sustainability in OECD countries. Gondwana Res 103:445–457. https://doi.org/10.1016/j.gr.2021.10.026
Khan I, Zakari A, Zhang J, et al (2022b) A study of trilemma energy balance, clean energy transitions, and economic expansion in the midst of environmental sustainability: new insights from three trilemma leadership. Energy 248:123619. https://doi.org/10.1016/j.energy.2022.123619
Khattree R (2017) Principal component analysis networks and algorithms. Int Stat Rev 85:543–544. https://doi.org/10.1111/insr.12240
Li S, Jia N, Chen Z et al (2022) Multi-objective optimization of environmental tax for mitigating air pollution and greenhouse gas. J Manag Sci Eng 7:473–488. https://doi.org/10.1016/j.jmse.2022.02.001
Liu D, Zhu X, Wang Y (2021) China’s agricultural green total factor productivity based on carbon emission: an analysis of evolution trend and influencing factors. J Clean Prod 278:123692. https://doi.org/10.1016/j.jclepro.2020.123692
Narayan PK, Narayan S (2008) Does environmental quality influence health expenditures? Empirical evidence from a panel of selected OECD countries. Ecol Econ 65:367–374. https://doi.org/10.1016/j.ecolecon.2007.07.005
Ozcan B, Ozturk I (2019) A historical perspective on environmental Kuznets curve. Elsevier
Ozturk I, Aslan A, Altinoz B (2022) Investigating the nexus between CO2 emissions, economic growth, energy consumption and pilgrimage tourism in Saudi Arabia. Econ Res Istraz 35:3083–3098. https://doi.org/10.1080/1331677X.2021.1985577
Ozturk I, Farooq S, Tariq M, Skare M (2023a) Geoscience Frontiers an empirical investigation of financial development and ecological footprint in South Asia : bridging the EKC and pollution haven hypotheses. Geosci Front 101588. https://doi.org/10.1016/j.gsf.2023.101588
Ozturk I, Sharif A, Godil DI, et al (2023b) The dynamic nexus between international tourism and environmental degradation in top twenty tourist destinations: new insights from quantile-on-quantile approach. Eval Rev 0193841X221149809. https://doi.org/10.1177/0193841X221149809
Pedroni P (2004) Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis. Econom Theory 20:597–625. https://doi.org/10.1017/S0266466604203073
Pesaran HM, Yamagata T (2008) Testing slope homogeneity in large panels. J Econom 142:50–93. https://doi.org/10.1016/j.jeconom.2007.05.010
Pesaran MH (2015) Testing weak cross-sectional dependence in large panels. Econom Rev 34:1089–1117. https://doi.org/10.1080/07474938.2014.956623
Pesaran MH (2007) A simple panel unit root test in the presence of cross-section dependence. J Appl Econom 22:265–312. https://doi.org/10.1002/jae
Pesaran MH, Ullah A, Yamagata T (2008) A bias-adjusted LM test of error cross-section independence. Econom J 11:105–127. https://doi.org/10.1111/j.1368-423X.2007.00227.x
Rehman A, Alam MM, Ozturk I et al (2023) Globalization and renewable energy use: how are they contributing to upsurge the CO2 emissions? A global perspective. Environ Sci Pollut Res 30:9699–9712. https://doi.org/10.1007/s11356-022-22775-6
Rehman A, Ma H, Ahmad M, et al (2022) Estimating interlinks of carbon emissions from transportation, industrialization, and solid/liquid fuels with economic progress: evidence from Pakistan. Int J Environ Sci Technolhttps://doi.org/10.1007/s13762-022-04111-0
Sharif A, Baris-Tuzemen O, Uzuner G, et al (2020) Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: evidence from quantile ARDL approach. Sustain Cities Soc 57:102138. https://doi.org/10.1016/j.scs.2020.102138
Shariff NSM, Hamzah NA (2015) A robust panel unit root test in the presence of cross sectional dependence. J Mod Appl Stat Methods 14:159–171. https://doi.org/10.22237/jmasm/1446351180
Shi L, Chen H, Meng H, et al (2021) How environmental policy impacts technology adoption: a case of landfill leachate. J Clean Prod 310:127484. https://doi.org/10.1016/j.jclepro.2021.127484
Song C, Chen Y, Yin G, Hou Y (2023) Spatial correlation and influencing factors of industrial agglomeration and pollution discharges: a case study of 284 cities in China. Environ Sci Pollut Res 30:434–450. https://doi.org/10.1007/s11356-022-22230-6
Song W, Wang C, Chen W, et al (2020) Unlocking the spatial heterogeneous relationship between per capita GDP and nearby air quality using bivariate local indicator of spatial association. Resour Conserv Recycl 160:104880. https://doi.org/10.1016/j.resconrec.2020.104880
Song Y, Yang L, Sindakis S, et al (2022) Analyzing the role of high-tech industrial agglomeration in green transformation and upgrading of manufacturing industry: the case of China. Springer US
Tang D, Peng Z, Yang Y (2022) Industrial agglomeration and carbon neutrality in China: lessons and evidence. Environ Sci Pollut Res 29:46091–46107. https://doi.org/10.1007/s11356-022-19102-4
The World Bank (2021) Report: universal access to sustainable energy will remain elusive without addressing inequalities. https://www.worldbank.org/en/news/press-release/2021/06/07/report-universal-access-to-sustainable-energy-will-remain-elusive-without-addressing-inequalities. Accessed 11 May 2022
Wang K, Rehman MA, Fahad S, Linzhao Z (2023) Unleashing the influence of natural resources, sustainable energy and human capital on consumption-based carbon emissions in G-7 countries. Resour Policy 81:103384. https://doi.org/10.1016/j.resourpol.2023.103384
Westerlund J (2007) Testing for error correction in panel data. Oxford Bull Econ Financ 69:709–748. https://doi.org/10.1111/j.1468-0084.2007.00477.x
Xu Z, Wang X, Wu G (2022) Exploring the coupling relationship of industrial agglomeration and low-carbon economy considering spatiotemporal differentiation: an empirical study in China’s construction machinery industry. Front Eng Managhttps://doi.org/10.1007/s42524-022-0197-1
Yang H, Xu X, Zhang F (2022) Industrial co-agglomeration, green technological innovation, and total factor energy efficiency. Environ Sci Pollut Res 29:62475–62494. https://doi.org/10.1007/s11356-022-20078-4
Yue Z, Meng L, Mu Y, et al (2023) Does foreign direct investment promote environmental performance: an investigation on shadow prices of pollutants. J Clean Prod 387:135914. https://doi.org/10.1016/j.jclepro.2023.135914
Funding
This research was funded by the Science and Technology Project of Taizhou Science and Technology Bureau, grant number (21gya31) and the Science and Technology Project of Zhejiang Provincial Department of Housing and Urban–Rural Development, grant number (2020K165).
Author information
Authors and Affiliations
Contributions
Weishang Guo: conceptualization, writing—original draft, variable construction, and formal analysis. Desire Wade Atchike: conceptualization, writing—original draft, variable construction, and formal analysis. Munir Ahmad: writing reviewing and editing and formal analysis. Yaxiao Chen: writing—original draft and formal analysis. Shili Gu: conceptualization and writing—original draft.
Corresponding author
Ethics declarations
Ethics approval and consent to participate
Not applicable.
Consent for publication
Not applicable.
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Ilhan Ozturk
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Guo, W., Atchike, D.W., Ahmad, M. et al. Empirics on linking industrial agglomeration, energy consumption, residential construction sector growth, and environmental sustainability. Environ Sci Pollut Res 30, 66386–66399 (2023). https://doi.org/10.1007/s11356-023-27131-w
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-023-27131-w