Study On The Dynamic Effects On Carbonproductivity Of Industrial Agglomeration

The industrial agglomeration can not only create competitive advantage for developed countries and regions, but also inject momentum of development for less developed countries. China, as the largest developing country and the second largest economy in the world, whose economic level has been raised a lot. Part of the reason is due to vigorously promotion to the development of industrial agglomeration. With the sustainable development of the world economy, climate change has been gradually intensified. The international community think that is an effective way to tackle global warming problem by reducing emissions of carbon dioxide. By the rapid development, our carbon emissions are increasing rapidly, and we are the largest carbon emissions country. In November 26,2009 China formally announced the reduction of carbon dioxide emission reduction targets. The plan is going to achieve reducing aims of carbon dioxide emissions (intensity of carbon emissions per unit of GDP) in 2020, and the reduction is 40% to 50% on the basis of 2005. Conversion to the requirement of carbon productivity is respectively increased by 67% and 82%. Based on this, this paper will research the effects on carbon productivity of vigorously developing our industrial agglomeration.Firstly, this paper summarized the current domestic and foreign industrial agglomeration theory, and introduced the calculating method of industrial agglomeration and carbon productivity. The researches about the relationship between the industrial agglomeration and carbon productivity are also overviewed. Then, based on the theoretical analysis and review of the literature, descriptive analysis was used on the industrial agglomeration and carbon productivity.The next step was going to take two-step empirical analysis to analyze the effects on carbon productivity of industrial agglomeration. The first step is carrying on the time series analysis by the national total data. The conclusions are about that industrial agglomeration is Granger cause of carbon productivity and industrial agglomeration has significant impact on the carbon productivity by the national level. By the second step, we use the provincial data. Based on the Cobb Douglas production function, employment density which is the measure of the degree of industrial agglomeration is introduced into the model.In the provincial data level, the final conclusion is that industrial agglomeration has no significant effect on carbon productivity. Combined the two-step analysis conclusion, this paper discussed why these two level analysis results are different. We knew that our country as a whole, the central government promotes total industrial agglomeration. So the effects on carbon productivity are significantly. However, as each province has their own limitations, the central government make different development plan to each province. Then, some provinces’industrial agglomeration has significant influence on carbon productivity, while others haven’t.Finally, based on the empirical analysis, and combined with the optimal scale of industrial agglomeration and China’s carbon emission status, this paper pointed out the importance of reasonable planning of industrial agglomeration and blending the low carbon concept into the development of industrial agglomeration. Taking this as the foundation, this paper proposed policy recommendations about our country’s industrial agglomeration and low carbon development.