Study On The Effect Of Industrial Agglomeration On Environmental Pollution And Its Regional Heterogeneity

With the scale of China’s economy growing, the difficult choice between economic development and environmental pollution has increasingly become the focus of people’s attention day by day. Under the background that industrialization and urbanization process is not reversible, analysis of the inherent power of energy saving and emission reduction is a very realistic and urgent problem. As the forward position of China’s economic development and reform, Guangdong actively explores the path of industrial transformation and upgrading, to coordinate the balanced development of the economy and the environment. Since the implementation of the "double transfer " strategy in 2005, the industrial agglomeration in different regions of the province has been developed in different degrees, and the different environmental effects have also been produced.In the theoretical analysis section, expound the relationship between industrial agglomeration and environmental pollution and make assumptions about the mechanism of action. Construct a theoretical model to analyze the correlation between industrial agglomeration and environmental pollution, as well as its regional heterogeneity. In the empirical analysis section, author process the panel data of Guangdong Province using VECM, to empirically analyze of the relationship between industrial agglomeration and environmental pollution and differences among regions. In the short term the industry agglomeration is found to have a negative externality effects on the environment, but in the long term there is no causal relationship between industrial agglomeration and environmental pollution. Moreover, the result is of regional heterogeneity: the Pearl River Delta region and the East Wing have a negative correlation while the Mountains region and the West Wing showing the opposite result. It shows that the Mountainous region and the West Wing maybe a "Pollution Haven" to which the Pearl River Delta region and the East Wing transferred the expense of environmental costs.