Tobacco Industry Agglomeration and Industrial Pollution Emission: Nonlinear Test Based on Panel Data

Abstract

In the past 40 years, the agglomeration of tobacco industry plays a vital role in economic growth in China. Meanwhile, the rapid economic development has paid serious environmental and energy costs.Based on the panel data of 31 provinces in China from 2005 to 2015, this paper uses the differential GMM method to empirically test the relationship between the agglomeration of tobacco industry and industrial pollution emissions. The study found that the spatial agglomeration of the tobacco industry has a significant negative impact on industrial wastewater, sulfur dioxide and industrial dust emissions. Capital labor, enterprise scale, and pollution control investmentall have a significant impact on pollution emissions.Therefore, the increase in the agglomeration of China's tobacco industry is conducive to reducing industrial pollution emissions.