Exploring the impacts of producer services agglomeration on manufacturing carbon emissions: Empirical evidence from China

This study employs panel data from 30 provinces and cities in China from 2004 to 2019 to empirically estimate the relationship between producer services agglomeration (PSA) and manufacturing carbon emissions. The findings suggest that such agglomeration is beneficial for lowering carbon emissions in manufacturing, and this conclusion passes multiple robustness tests. Heterogeneity analysis results show that PSA in the east and west regions significantly lowers manufacturing carbon emissions, while its impact in the central region is not significant. High-end PSA is beneficial for cutting carbon emissions in manufacturing, but the inhibitory effect of middle- and low-end PSA is not significant. PSA significantly suppresses carbon emissions from capital- and technology-intensive manufacturing, while it has little impact on carbon emissions from labor-intensive manufacturing. Further analysis reveals that PSA has a dual-threshold impact based on absorptive capacity and a single-threshold effect based on infrastructure level on manufacturing carbon emissions. As the absorption capacity crosses the second threshold or the infrastructure level crosses the first threshold, the inhibition effect of PSA on manufacturing carbon emissions begins to become prominent and shows a trend of enhancement. Our research findings provide theoretical and empirical bases for lowering carbon emissions in the manufacturing sector and fostering its ascent to the highest position of the value chain.