Nexus between New-Type Urbanization, Economic Development, and Haze Pollution in China: A Spatial Analysis

Abstract

Given China's new-type urbanization and green transformation, effective control of haze pollution has assumed paramount importance. However, the two-way effects of new-type urbanization, economic development, and haze pollution from a spatial and temporal perspective have not been well explored. Using panel data from 2009 to 2020 for 278 Chinese cities, we applied spatial simultaneous equation models and the generalized spatial three-stage least squares approach to investigate the interactions among new-type urbanization, economic development, and haze pollution. Then, temporal heterogeneity analysis was conducted to discuss changes in the interactions. The findings revealed the following: (1) There was a bidirectional connection between new-type urbanization and economic development. Moreover, the favorable influence of new-type urbanization on economic development enhanced from 2009 to 2020, with the coefficient rising from 0.95 to 1.38. Interestingly, it was only during the Period 2015–2020 that new-type urbanization had a radiative impact on economic growth in the surrounding areas. (2) A 1% increase in new-type urbanization and economic development resulted in 0.71% and 0.91% increase in haze pollution, respectively. Nonetheless, with the new-type urbanization construction, the haze-reducing effects gradually appeared. (3) Considering the reverse effects, severe haze pollution was detrimental to new-type urbanization and economic development. Notably, this inhibitory effect was underestimated when neglecting spatial effects. This study's findings could provide empirical evidence for promoting sustainable urban development and haze pollution reduction in China.