Abstract:Based on the data of China's provincial manufacturing panel from 2003 to 2015, this paper analyzes the impact of manufacturing aggregation on static and dynamic energy performance and its regional differences by using the two-stage least-squares method. The results show that (1) from the national overall point of view, whether in the absence of environmental constraints or under environmental constraints, there is a clear "U-shaped" curve relationship between manufacturing agglomeration and static and dynamic energy performance and its decomposition indicators. (2) The economic development level of manufacturing industry and the static and dynamic energy performance also show a significant "U-shaped" relationship, that is, "Environmental Kuznets Hypothesis" exists significantly in China's manufacturing industry. Secondly, the scale of manufacturing enterprises and the intensity of environmental regulation are conducive to improving static and dynamic energy performance, which verifies the "Schumpeter hypothesis" and "Porter hypothesis". In addition, manufacturing FDI and property rights structure have a negative impact on both static and dynamic energy performance, supporting the "pollution refuge" hypothesis. (3) There are obvious regional differences in the impact of manufacturing agglomeration on static and dynamic energy performance in the two cases of no environmental constraints and environmental constraints. Among them, the manufacturing agglomeration in the eastern and central regions mainly promotes the improvement of its dynamic energy performance through the joint effect of the cross-period improvement of energy technology efficiency and the cross-period progress of energy technology, while the manufacturing agglomeration in the western region mainly promotes the improvement of its dynamic energy performance through the cross-period improvement of energy technology efficiency.

Key words:manufacturing agglomeration, energy performance, energy technology efficiency, energy technology progress, energy saving and emission reduction

Abstract:  In the process of China′s rapid growth into the world′s second largest economy, the contribution of manufacturing industry is particularly prominent. "Made in China" is famous all over the world, and a large number of products are exported overseas, which has created one miracle after another for China′s economy, as a result, China has gradually become the largest manufacturing country in the world. Looking back on the development of Chinese manufacturing industry, "resource dividend" was one of the main driving forces for Chinese manufacturing industry to create a miracle of economic growth. However, with the substantial increase of energy factor prices, the increasing pressure of energy conservation and emission reduction and the rapid deterioration of environmental quality problems, the traditional "resource dividend" is gradually disappearing, Chinese manufacturing industry paid for expensive resources and environment, and the extensive economic growth mode characterized by "high energy consumption, high emission, high pollution and low efficiency" is difficult to sustain. Therefore, Chinese manufacturing industry must take the "green manufacturing" road of energy conservation, emission reduction and sustainable development, and it is unsustainable to rely too much on the input of human resources, capital, energy and other factors, the development mode of Chinese manufacturing industry must change from factor expansion to efficiency enhancement. The Fifth Plenary Session of the 18th CPC Central Committee clearly puts forward the five development concepts of "innovation, coordination, green, opening and sharing", adhering to the basic national policy of resource conservation and environmental protection, and adhering to sustainable development. The 19th National Congress of the Communist Party of China also clearly proposes to establish and improve the green economic system, low-carbon and circular development, promote the revolution of energy production and consumption, and advocate green development. Therefore, under the dual pressure of energy and environmental constraints, in order to achieve the sustainable and green development of Chinese manufacturing industry, so as to achieve the win-win of economic growth, energy conservation and environmental protection, and then promote the sound and rapid development of China′s economy, improving the energy performance of manufacturing industry has become the key problem to be solved.

As the largest manufacturing country in the world, the miracle of economic growth created by Chinese manufacturing industry is also a process of deepening industrial agglomeration. Since the reform and opening up, China′s industrialization process has been advancing with the improvement of the geographical spatial agglomeration level of its economic activities. Therefore, industrial agglomeration has become one of the most significant characteristics of China′s manufacturing economic activities. Theoretically speaking, on the one hand, manufacturing agglomeration can significantly improve energy performance through increasing returns to scale, knowledge or technology spillover, transaction cost reduction and incentive mechanism of energy conservation and emission reduction formed by imperfect competition; On the other hand, it will also lead to the monopoly of resources through the negative externalities, which will lead to the distortion of resource allocation and inefficient use of energy, and then inhibit the improvement of energy performance. Therefore, in-depth study on the impact of manufacturing agglomeration on energy performance and explore feasible ways to improve the energy performance of manufacturing industry will not only help to clarify the mechanism of manufacturing agglomeration on energy performance, but also effectively analyze the influencing factors that restrict the improvement of energy performance, so as to promote Chinese manufacturing industry from a high-speed growth stage to a high-quality development stage and from an extensive development stage mode to intensive development mode. Moreover, it has very important theoretical research significance and practical guiding value to realize the sustainable growth of China′s economy, the intensive and efficient use of energy, the improvement of environmental quality problems, thus speeding up the construction of "two oriented society", the practice of "ecological civilization" and the promotion of "green manufacturing". 

Based on the provincial manufacturing panel data in China from 2003 to 2015, this paper makes an empirical analysis of the impact of manufacturing agglomeration on static and dynamic energy performance and its regional differences by using the two-stage least square method. The results show that: (1) As a whole, no matter without environmental constraints or under environmental constraints, there is an obvious "U" curve relationship between manufacturing agglomeration and static and dynamic energy performance as well as its decomposition index; (2) There is also a significant "U" relationship between manufacturing economic development level and static and dynamic energy performance, namely that the "environmental Kuznets hypothesis" is significant existence in Chinese manufacturing industry. Secondly, manufacturing enterprises scale and environmental regulation are both beneficial to the improvement of static and dynamic energy performances, Schumpeter′s hypotheses and Porter hypothesis are verified. In addition, foreign direct investment and property right structure of manufacturing industry have a negative impact on static and dynamic energy performance, pollution haven hypothesis is supported; (3) Under two circumstances of without environmental constraints and environmental constraints, there are both obvious regional differences in the impact of manufacturing agglomeration on static and dynamic energy performance. Among them, the manufacturing agglomeration in the eastern and central regions promotes the dynamic energy performance mainly through the combined action of energy technical efficiency improvement and energy technological progress, while the manufacturing agglomeration in the western region promotes the dynamic energy performance only through the energy technical efficiency improvement. Based on the above conclusions, this paper draws some policy implications to promote the manufacturing industry to improve quality and efficiency, save energy and reduce emissions, and realize the high-quality, intensive and sustainable development of Chinese manufacturing industry. 

Key words: manufacturing agglomeration, energy performance, energy technical efficiency, energy technological progress, conserve energy and reduce emissions

Authors: Yang Haochang, Li Lian Shui, Zhang Fa

Author: School of Economics and Management, Nanchang University

China Institute of Manufacturing Development, Nanjing University of Information Science and Technology

School of Public Policy and Management, University of Chinese Academy of Sciences

The full text has been published in Scientific Research Management, No. 5, 2021.