Zhou Liu
Zhou Liu
Zhou Liu
www.geogsci.com www.springerlink.com/content/1009-637x
2016 Journal of Geographical Sciences
1 Introduction
In the past 40 years, high-speed and ultra-high-speed economic growth has put increasing
pressure on China’s environmental system (Wang et al., 2018; Liang and Yang, 2019). In
particular, the carrying capacity of the water environment has reached, or approached, the
upper limit (Chen et al., 2018a). By 2016, the quality of some rivers in China continued to
deteriorate. For example, because of the high degree of economic and population agglom-
eration in the Haihe River Basin, the water environment in northern China was seriously
polluted, and the proportion of inferior V water quality sections accounted for 35.7% of the
whole region (Zhao, 2017). Some rivers flowing through urban areas have a heavily polluted
water body that is black and smelly due to a lack of oxygen, which has caused many com-
plaints from the public (Ji et al., 2017). The problem of water pollution seriously restricts
improvement in the quality of human settlements and poses a threat to the health of residents
(Hu and Cheng, 2013). To solve the problem of environmental capacity overload, it is nec-
essary not only to increase environmental protection and rectification, but also to transform
the traditional mode of economic development driven by pollution-intensive industries (Lu,
2015; Fang et al., 2017). Therefore, it is important to fully understand the coupling rela-
tionship between economic development and environmental pollution, and to systematically
analyze the impact of economic agglomeration on water pollutant emissions. In this regard,
this paper not only provides a reference for comprehensive measures against water pollution
but also forms a sound basis for environmentally friendly development.
At present, with regard to the relationship between economic growth and pollutant emis-
sions, scholars have conducted extensive investigations from different perspectives that have
focused on the impacts of the factors driving pollutant emissions, including the level of eco-
nomic development, economic structure, foreign trade performance, capital investment, and
household consumption. The relationship between economic growth and pollutant emissions
generally presents an “inverted U-shaped” curve (Grossman and Kuerger, 1995; Churchill et
al., 2018). However, studies in China have found that both economic growth and pollutant
emissions are still increasing, and environmental quality is not improving with economic
growth (Yu et al., 2003; Hao et al., 2018). Some studies have also confirmed that there is a
spillover effect of environmental pollution between regions, and it has been found that the
simultaneous agglomeration of pollutant emissions and economic activities has aggravated
environmental degradation (Frank et al., 2001; Hossein and Kaneko, 2013; Zhao et al.,
2017). Economic agglomeration, a typical form of economic activity, can generate spillover
benefits and economies of scale (Ellison and Glaeser, 1999). Therefore, it has been
commonly regarded as a coherent policy to promote regional economic growth by forming
industrial clusters. However, due to the uncertainty regarding the impact of economic ag-
glomeration on the environment, in recent years, scholars have expended much effort in
studying the issue.
In view of the impact of economic agglomeration on pollutant emissions, existing studies
have mainly focused on theoretical analysis of the impact mechanism and empirical study of
the impact. The former uses the theoretical derivation and equilibrium model of environ-
mental variables to describe the relationship between economic agglomeration and pollutant
emissions, highlighting their external characteristics (Han et al., 2018; Thisse, 2018). Em-
pirical research generally addresses this issue from two different perspectives. On the one
ZHOU Kan et al.: The impact of economic agglomeration on water pollutant emissions 2017
hand, it is believed that, on a provincial level, economic agglomeration has led to environ-
mental degradation (Liu et al., 2017a; Liu et al., 2017b; Frank et al., 2001; Verhoef and Ni-
jkamp, 2002). Micro-level analysis has also confirmed a correlation between manufacturing
agglomeration and water pollution (Hosoe and Naito, 2006; Cheng, 2016). However, given
that economic agglomeration can accelerate technological progress and diffusion and pro-
vide pollution mitigation facilities (Guo et al., 2016; Wang et al., 2018), some scholars have
found that economic agglomeration has had an emission reduction effect. Moreover, ag-
glomeration is also conducive to the improvement of labor productivity and economic de-
velopment, as well as the promotion and implementation of stricter environmental regula-
tions to reduce pollution (Xu and Cheng, 2006; Wang and Yu, 2017; Li et al., 2018). In short,
due to regional economic disparity, there may be vast regional differences with regard to the
impact of economic agglomeration.
In light of the above, there are several research gaps in the literature. Firstly, the spatial
units of existing studies are mostly at the national or provincial level, with scant empirical
evidence at the city level. Compared with macro-level studies using indicators such as the
Herfindahl index, spatial Gini coefficient, and the Theil index, a city-level economic ag-
glomeration can relatively accurately reflect an agglomeration of economic activity in a
geographical space, and it is easier to capture the spatial spillover effect. Secondly, most
existing studies focus solely on the impact of economic agglomeration on pollutant emis-
sions as a whole, regardless of differences arising from city size. Lastly, in most cases,
scholars only use spatial econometric models based on univariate spatial correlation to re-
veal the spillover effects of economic agglomeration on environmental pollutants. However,
bivariate spatial correlation makes it possible to obtain more accurately the spatial correla-
tion effect of economic agglomeration and water pollutant emissions, but few studies have
taken it into consideration. To fill these gaps, this study aims to investigate the heterogene-
ous relationship between economic agglomeration and water pollutant emissions from the
perspective of spatial spillover at city level. Based on the COD and NH3-N emissions data-
base of 339 cities in China, this study constructs an econometric model to explore the impact
of economic agglomeration on water pollutant emissions and examines the differences in
magnitude of this impact between different-sized cities. Further, the method of bivariate
spatial correlation is used to analyze the spillover effects of economic agglomeration on wa-
ter pollutant emissions.
The data used in this study include water pollutant emissions and socio-economic statistics.
According to the 13th Five-Year Plan for Economic and Social Development of the People’s
Republic of China (2016–2020), two indicators, including Chemical Oxygen Demand (COD)
and Ammonia Nitrogen (NH3-N) are selected. COD is the amount of chemical oxidants de-
mand for the oxidation of oxidizable substances in water, which can accurately reflect or-
ganic pollution in water. NH3-N refers to the most harmful type of nitrogen in water that can
increase the probability of eutrophication (Scholten et al., 2005; Ferard and Blaise, 2013).
Data on water pollutant emissions are obtained from the China Environmental Statistics
2018 Journal of Geographical Sciences
Yearbook and China Environmental Yearbook; socio-economic statistics are mainly derived
from the China Regional Economic Statistical Yearbook and China Urban Statistical Year-
book. Some of the missing data are supplemented through other relevant statistical year-
books. If not specified, the data in this study are all taken from 2015. Due to a relatively
slow urbanization rate in 2015, considering that urbanization rates are relatively stable in the
short term (Chen et al., 2018b), data on the proportion of urban population are collected
from the Sixth National Population Census in 2010, which is regarded as an urbanization
level index. In addition, administrative division data are obtained from the National Basic
Geographic Information System website (http://www.ngcc.cn/), with a total of 339 cities.
Due to the lack of data, Taiwan Province, Hong Kong, and Macau are not included.
2.2 Methodology
trialization level; URB is an indicator of the urbanization level; and εi is the error term. The
statistical description of variables with logarithmic form is shown in Table 1.
Table 1 The statistical description of variables with logarithmic form
Variables Unit Mean Std. dev. Median Min Max
COD Ton 10.240 0.850 10.32 6.220 12.54
NH3-N Ton 8.190 0.910 8.320 4.170 10.690
EA 10000 yuan / km2 10.56 0.560 10.60 8.510 12.23
WIC Ton / 100 million yuan 3.480 0.740 3.520 1.450 5.330
WIN Ton / 100 million yuan 2.330 0.610 2.410 0.147 4.730
PGDP Yuan 10.450 0.600 10.420 8.860 12.120
POP 10000 person 4.860 1.000 4.950 0.780 7.630
IS Percentage 3.880 0.250 3.930 2.840 4.410
URB Percentage 3.790 0.370 3.790 2.540 4.610
Yi Y Y j Y
n n
W
i 1 j 1 ij
I (2)
2 n n
S Wij
i 1 j 1
n
samples (n = 339); Yi and Yj are the water pollutant emissions of city i and city j, respec-
tively; Wij is the spatial weight matrix, determined by the proximity criterion. The spatial
pattern of pollutant emissions and economic agglomeration is characterized by the local spa-
tial autocorrelation index (Getis-Ord G*), exploring whether there are statistically signifi-
cant high-value clusters (hot spots) and low-value clusters (cold spots). The formula for Gi*
is:
n
W
j 1 ij
d Yj
Gi* (3)
n
Yj
j 1
When i is not equal to j, the standard form of Gi* is Z (Gi* ) [Gi* E (Gi* )] / Var (Gi* ) ;
E (Gi* ) and Var Gi* are the expected values and variances of Gi*, respectively.
If Z (Gi* ) is positive and significant, it indicates that the value around city i is relatively high,
2020 Journal of Geographical Sciences
which is a hot spot where high value is concentrated; if Z (Gi* ) is negative and significant,
it indicates that it is a cold spot with low value.
(2) Bivariate spatial autocorrelation
In order to investigate the spillover pattern between economic agglomeration and water
pollutant emissions, an analysis of global and local bivariate spatial autocorrelation is used
(Zhang et al., 2018), which is defined as:
n
I lmp Zlp W
q 1
q
pq Z m (4)
where Z lp X lp X l / l , Z mq X mq X m / m ; X lp is the attribute value l of the spatial
unit p; X mq is the attribute value m of the spatial unit q; X l and X m are the average values
of the attributes l and m, respectively; l and m are the variances of the attributes l and m,
respectively; W pq is the spatial connection matrix between spatial units p and q.
A variance inflation factor (VIF) was applied to test for multicollinearity between inde-
pendent variables; these results show that the maximum univariate VIF value for our dataset
is 3.84, far less than the critical value (10), indicating that there is no obvious multicollin-
earity problem between the variables. In the estimation results of the whole sample, coastal
sample, and inland sample, the probability values of the variance analysis are all 0.000, and
significant at the 1% level. Meanwhile, the values of the adjusted R2 indicate that all the
OLS models are statistically significant, and the regression results (Table 2) show that eco-
nomic agglomeration decreases water pollutant emissions to some extent in the whole sam-
ple. Whether the independent variable is lnCOD or lnNH3-N, coefficients of economic ag-
glomeration are all negative in the whole sample and the regional samples, and all except the
coastal regions are significant at the 5% level.
Specifically, a 1% increase in economic agglomeration leads to a decrease in COD emis-
sions by 0.117% and in NH3-N emissions by 0.102%, indicating that economic agglomera-
ZHOU Kan et al.: The impact of economic agglomeration on water pollutant emissions 2021
tion has a significant pollution reduction effect. An increase in the level of economic ag-
glomeration helps to improve resource consumption and energy use, as well as creating a
spillover of pollution control technologies. Agglomeration is also conducive to the govern-
ment’s centralized supervision of the emission process, which can effectively reduce the cost
of pollution control and promote the specialized division of labor. Ultimately, the goal of
reducing the intensity of pollutant emissions is achieved. For inland regions, economic ag-
glomeration can significantly reduce pollutant emissions. For every 1% increase in eco-
nomic agglomeration, the COD and NH3-N emissions will be reduced by 0.128% and
0.123%, respectively. Therefore, increasing the level of economic agglomeration is an effec-
tive means to improve regional environmental quality, especially in the case of low eco-
nomic agglomeration in inland regions (435.8 million yuan/km2). However, in coastal re-
gions with high economic agglomeration (696.2 million yuan/km2), economic activity is
mainly concentrated in a limited space, especially for manufacturing industries that are
prone to pollution. The total amount and intensity of water pollutant emissions accompany-
ing the production process also increase. In these regions, in order to improve the quality of
the water environment, it is necessary to adjust the industrial structure and gradually form an
industrial system with low energy consumption and low emissions.
In addition to economic agglomeration, factors such as industrialization, population size,
and emission intensity are positively driving water pollutant emissions. The whole estimate
2022 Journal of Geographical Sciences
shows that for every 1% increase in the proportion of secondary industry, COD emissions
and NH3-N emissions will increase by 0.339% and 0.178%, respectively; for every 1% in-
crease in population size, COD emissions and NH3-N emissions will increase by 0.924% and
0.958%, respectively. These results indicate that high pollution and high emissions have not
been reversed in the current industrialization development process, and the increase in
population size has also significantly increased water pollutant emissions. The impact of
urbanization on COD emissions is not significant but has a positive impact on NH3-N emis-
sions. For every 1% increase in the urbanization level, NH3-N emissions from whole sample,
coastal sample, and inland sample will increase by 0.337%, 0.194%, and 0.156%, respec-
tively, indicating that China’s NH3-N emissions are predominantly from urban areas. Under
rapid urbanization, in order to cope with NH3-N pollution, it is necessary to strengthen the
construction of pollution mitigation facilities. Notably, the coefficient of emission intensity
is positive in all models and is significant at the 1% level, indicating that technological pro-
gress is an important factor affecting water pollutant emissions. Hence, improving the level
of technological innovation is also an important way to control water pollutant emissions in
the future.
It is worth noting that the impact of the economic development level on national water
pollutant emissions is positive, and a 1% increase in per capita GDP increases COD emis-
sions by 0.369%. This indicates that the driving force of economic development on water
pollutant emissions still exists, especially in inland regions. Only in coastal regions does the
economic level have a negative impact on NH3-N emissions, and its coefficient is –0.461,
indicating that the inhibitory effect of the economic development level on NH3-N emissions
in coastal regions has already occurred. Further statistical analysis shows that the per capita
GDP of coastal cities (57,700 yuan) is higher than the national average (41,900 yuan) and is
also significantly higher than that of inland cities (35,100 yuan). According to the environ-
mental Kuznets curve law of economic development and pollutant emissions, unlike the
inland region, the coastal regions with relatively high per capita GDP have entered the back
end of the inverted U-shaped curve. This phenomenon is mainly attributable to the growing
demand for environmental regulation in the form of high economic development, increasing
investment in environmental technology, and rapid transformation of polluting industries.
The regression results of the three types of cities are shown in Table 3. The empirical results
indicate that all models have passed the significance test, and there is no heteroscedasticity
or multicollinearity. The value of adjusted R2 also shows a relatively high fitness. In the
models, with lnCOD as the dependent variable, the coefficients of economic agglomeration
are –0.089, –0.142, and –0.119 in large and megacities, medium-sized cities, and small-sized
cities, respectively, all of which are significant at the 10% level. It can be seen that the in-
hibitory effect of economic agglomeration in small- and medium-sized cities on water pol-
lutant emissions is not only higher than that of large and megacities but also higher than that
of the whole sample.
The positive impact of economic agglomeration on COD emissions reduction is more
significant in small- and medium-sized cities due to a clear tendency of manufacturing in-
dustries to gather in such cities, where there is huge potential for pollution mitigation.
ZHOU Kan et al.: The impact of economic agglomeration on water pollutant emissions 2023
However, as city size continues to expand, the negative externalities of industrial agglom-
eration and population growth appear, increasing the environmental impact. The estimation
results also confirm this finding, namely that the emission reduction effect of economic ag-
glomeration in large and megacities is smaller than that in small- and medium-sized cities.
The results also show that there is no statistically significant association between NH3-N
emissions and economic agglomeration.
Furthermore, due to the difference in city size, the explanatory power and significance of
other control variables for water pollutant emissions are quite different. For COD emissions,
the economic development level and population size have a significant impact in the three
types of cities, but the magnitude of this impact in small- and medium-sized cities is more
prominent than in large and megacities. An increase in the per capita GDP and in the popu-
lation size by 1% causes 0.844% and 1.098% increase in COD emissions in medium-sized
cities, respectively, and an increase in COD emissions by 0.850% and 1.032% in small-sized
cities, respectively. Meanwhile, the level of urbanization shows a negative impact in large
and megacities (the regression coefficient is –0.682), but presents a positive impact in
small-sized cities (the regression coefficient is 0.749). Population size and urbanization level
significantly drive NH3-N emissions increase, and their coefficients are all positive in the
estimates of the three types of cities. As the results show, a 1% increase in the urbanization
level will cause NH3-N emissions in large and megacities increase by 0.542% and in
small-sized cities increase by 0.771%. Overall, urbanization significantly drives COD emis-
sions increase in small- and medium-sized cities, but it has a strong inhibitory effect in large
and megacities, indicating that solving water pollution problems in small- and medium-sized
cities is key in reducing water pollutant emissions in the processes of urbanization.
This study uses Moran’s I of univariate and bivariate spatial autocorrelation to assess the
global spillover effects of economic agglomeration on water pollutant emissions. Moran’s I
has a minimum value of –1 and a maximum value of 1; if it exceeds 0, there is a spatial
positive correlation; if it is less than 0, there is a negative correlation; if it is equal to 0, there
is no spatial correlation. As shown in Table 4, the Moran’s I of COD and NH3-N emissions
are 0.258 and 0.254, respectively, and both pass the significance test at 1% level with note-
worthy differences, indicating that water pollutant emissions show a significant spatial cor-
relation at the national level. Furthermore, by calculating the Getis-Ord G* index, the G*
index is divided into four types: hot spot, sub-hot spot, sub-cold spot and cold spot. Based
on this division, hot-spot maps of COD and NH3-N emissions are generated (Figure 1). The
high-value and low-value clusters of COD and NH3-N emissions are found to be significant.
Among them, 19 cities are both hot spots for COD and NH3-N emissions, which are located
in Shandong and Jiangsu provinces.
The COD and NH3-N emissions are taken as the variables of central units, and the eco-
nomic agglomeration is used as the variable of surrounding units to calculate the global
bivariate Moran’s I. As shown in Table 4, the bivariate Moran’s I of the economic agglom-
eration and NH3-N emissions are 0.2025 and 0.2737, respectively, both of which pass the
significance test ate 1% level. This indicates that there is a significant difference in the de-
gree of spatial correlation between economic agglomeration and water pollutant emissions;
that is, the higher the level of economic agglomeration, the more prominent the water pol-
lutant emissions. In addition, the Moran’s I index of economic agglomeration and NH3-N
ZHOU Kan et al.: The impact of economic agglomeration on water pollutant emissions 2025
emissions is larger than that of COD emissions, which means that the high-intensity NH3-N
emissions tend to be distributed in cities with a higher economic agglomeration level. A
comparative analysis of the bivariate Moran’s I index of economic level and pollutant emis-
sions shows that the economic agglomeration has a greater spillover effect on water pollut-
ant emissions than does the economic development level.
Table 4 Moran’s I of univariate and bivariate spatial correlations for water pollutant emissions
Based on the z-test (P = 0.05), bivariate LISA cluster maps are formed to identify the main
spatial correlation pattern of economic agglomeration and water pollutant emissions (Figure 2),
including high agglomeration–high emissions (High–High), high agglomeration–low emis-
sions (High–Low), low agglomeration–high emissions (Low–High), low agglomeration–low
emissions (Low–Low). Additionally, the bivariate LISA cluster maps also include a random
pattern with no significant spatial correlation (Not sig.).
(1) High–High regions. Both the levels of economic agglomeration and the water pollut-
ant emissions are relatively high in these regions. The regions with high economic agglom-
eration and high COD emissions, including 24 cities across the country, are mainly distrib-
uted in northern and northeastern China, emanating from the Harbin–Changchun urban ag-
glomeration and Beijing–Tianjin–Hebei region to the Shandong Peninsula. The regions of
high economic agglomeration and high NH3-N emissions are distributed in Beijing, Tianjin,
southwestern Shandong, central and northern Jiangsu, Fujian, and the Pearl River Delta ur-
2026 Journal of Geographical Sciences
ban agglomeration, including 28 cities. In these regions, the levels of economic agglomera-
tion and industry density are particularly high, and large-scale economic agglomeration ac-
celerates pollutant emissions. Among them, Beijing, Tianjin, Xuzhou, Zaozhuang, Jining,
Rizhao, Linyi, and Yiyang are classified as High–High regions in terms of two kinds of wa-
ter pollutant emissions at the city level. It can be seen that in order to alleviate regional wa-
ter pollution in Beijing, Hebei, and southwestern Shandong, it is very important to control
the scale of economic agglomeration and accelerate the formation of an environmentally
friendly industrial structure.
(2) High–Low regions. The number of cities in this group is relatively small. Specifically,
the regions of high economic agglomeration and low COD emissions mainly include Lüli-
ang, Panzhihua, Liangshan, and Qujing. The regions of high economic agglomeration and
low NH3-N emissions consist of Baotou, Erdos, Yulin, Panzhihua, Liangshan, and Nanning.
Compared with the High–High regions, the water environmental pollution in this group is
not very severe, but with a further increase in industrial agglomeration, these may be the
regions where the water pollutant emission will increase rapidly in the future.
(3) Low–High regions. In these regions, the level of economic agglomeration is relatively
low, but the water pollutant emissions are relatively high. The regions with low economic
agglomeration and high COD emissions, including 14 cities, are mainly distributed around
the high agglomeration–high emissions regions in northeastern and northern China. The re-
gions with low economic agglomeration and high NH3-N emissions include Lianyungang,
Jingzhou, Xianning, Shaoyang, Shaoguan, Huizhou, Hengshui, Kaifeng, and Xinyang. Al-
though the level of economic agglomeration of these cities is relatively low, due to the high
proportion of agricultural production involving livestock and poultry breeding, and aqua-
culture and crop production, the pollutant emissions of the cities, due to the agricultural
sources, are quite large. The average proportions of agricultural COD and NH3-N emissions
in Low–High regions are 68.15% and 40.04%, respectively, which are significantly higher
than those in other types of cities. It can be seen that agricultural nonpoint source pollution
should be mitigated through green prevention and control in these regions, including im-
proving the efficiency of agricultural water use and reducing the use of pesticides and fertil-
izers. In addition, water pollutant emissions are increasing faster due to the spillover effects
of adjacent high-emission cities.
(4) Low–Low regions. In these regions, both the levels of economic agglomeration and
the water pollutant emissions are relatively low. These regions are widely distributed and
concentrated in the Qinghai-Tibet Plateau and its marginal areas, including provincial-level
areas of Tibet, Qinghai, Xinjiang, Gansu and Ningxia, and the cities in western Inner Mon-
golia, northwestern Yunnan, and western Sichuan. Most of these cities are located in the
northwest of the “Hu Huanyong Population Line”, where the population is sparse and the
economic density relatively low. Large-scale undeveloped resources and spaces and tradi-
tional agricultural production and living patterns result in relatively low levels of water pol-
lutant emissions. The average COD and NH3-N emissions are 23,500 tons and 2200 tons,
respectively, which are only 1/5 and 1/6 the average emissions of High–High regions. Gen-
erally, this group should control the emissions from urban residents and industries in the
future.
ZHOU Kan et al.: The impact of economic agglomeration on water pollutant emissions 2027
Changchun urban agglomeration. Among them, Beijing, Tianjin, and southwestern Shan-
dong are both high agglomeration–high emissions regions with two kinds of water pollutant
emission. Low agglomeration–low emissions regions are mainly distributed in the Qing-
hai-Tibet Plateau and its marginal areas. Low agglomeration–high emissions regions are
mainly distributed in the periphery of the high agglomeration–high emissions regions in
northeastern and northern China. In the future, it will be necessary to strengthen environ-
mental protection and governance cooperation across administrative regions by focusing on
the joint prevention and control of high agglomeration–high emissions regions and low ag-
glomeration–high emissions regions. For different water pollutant emissions, a multi-scale
coupled water environment integrated control unit, where watersheds and administrative
districts are nested within each other, should be formed to minimize the spatial spillover ef-
fects of economic agglomeration and water environmental pollution.
Overall, this study is conducive to a firmer understanding of the relationship between eco-
nomic agglomeration and water pollutant emissions. However, there are still some areas that
require further research: (1) exploring in depth the different critical thresholds of economic
agglomeration affecting water pollutant emissions; (2) revealing the feedback mechanism of
water pollutant emissions on economic agglomeration; (3) further analyzing the en-
vironmental properties and conjugation effects of various water pollutants, which can pro-
vide a reference for determining the factors’ weights and integrating them into wa-
ter–environment capacity assessments.
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