Environmental regulation, Manufacturing and Producer Services Industrial Co-agglomeration, and Energy Efficiency − Evidence from 282 Cities in China

As a nascent form of spatial agglomeration behavior, industrial co-agglomeration presents a novel opportunity for the augmentation of energy efficiency. Grounded in the instances of 282 cities spanning from 2012 to 2021, the study finds a “U” − shaped curve relationship exists between the industrial co-agglomeration and energy efficiency by spatial Durbin model, which broadens the perspective on the key factors promoting energy efficiency from a theoretical standpoint. Secondly, we examined the heterogeneous effects of industrial co-agglomeration on energy efficiency from four distinct dimensions in light of China’s distinctive geographical and industrial distribution patterns. This paper undertakes a more in-depth exploration of the effect that industrial co-agglomeration and environmental regulation exert on energy efficiency, and the outcomes suggest that the integration of industrial co-agglomeration and formal environmental regulation can further enhance energy efficiency, while the combination of industrial co-agglomeration and informal environmental regulation inhibits the positive effect on energy efficiency, offering a theoretical foundation for Chinese environmental policymakers to formulate distinct environmental regulatory strategies. This paper reveals a “1 + 1 > 2” energy-saving and efficiency mechanism. It deepens understanding of environmental regulations, and provides insights for resolving the “economic growth − energy consumption” dilemma, contributing to the global sustainable development agenda.