Does the path of technological progress matter in mitigating China's PM2.5 concentrations? Evidence from three urban agglomerations in China.

ABSTRACT

Technological progress is widely considered to play an important role in reducing air pollution. While growing literature has explored the effects of technological progress on environmental quality, fewer studies have considered the varied effects exerted by different technological progress paths on PM2.5 concentrations. This paper explored the relationship between two different kinds of technological progress (indigenous innovation and technology diffusion) and PM2.5 concentrations. Indigenous innovation was in this study considered to be composed by research and development investment (R&D) and import technology (IM); technology diffusion was represented by foreign direction investment (FDI) and export learning effect represent (EX). A panel data model was employed in order to explore the varied impact of these different technological progress paths on PM2.5 concentrations, using data for 48 cities located in China's three most developed urban agglomerations (Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Pearl River Delta), for the period 2000-2015. The results reveal that without control variables, FDI had a significant negative impact on PM2.5 levels in Beijing-Tianjin-Hebei, and EX a significant positive impact. FDI, R&D, and EX were found to positively correlate with PM2.5 levels in the Yangtze River Delta. In Pearl River Delta, R&D presented a significant negative relationship. The findings of this study provide decision makers and industry managers with a scientific basis from which to approach the task of mitigating PM2.5 concentrations through technological progress.