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The mechanism between financial agglomeration and environmental pollution is an important concern for both academia and policymaking. The main objective of this paper is to study the nonlinear impacts of financial agglomeration on environmental pollution. A theoretical framework was first constructed based on the scale effect, structure effect, and technology innovation effect of financial agglomeration and a Copeland-Taylor endogenous growth model. Using the panel data of 281 Chinese prefectural-level cities from 2003 to 2019, a panel threshold regression model was introduced to estimate the nonlinear association between financial agglomeration and environmental pollution. Industrial smoke (dust) emissions and industrial wastewater discharge were adopted to quantify current environmental pollution in China. The results show that financial agglomeration had a significant effect on improving the environment characterized by gradient thresholds; also notable is that 68.64% of the cities crossed the threshold value, entering the decelerating phase of financial agglomeration inhibiting environmental pollution. Both upgrading industrial structure and enhancing marketization could reduce environmental pollution, whereas increasing human capital, environmental regulation, and energy consumption had a deteriorating effect. The three channels for financial agglomeration to reduce environmental pollution were revealed to be financial scale, financial structure, and financial technology innovation. Our findings provide strong evidence for policymaking in sustainable development. [Display omitted] • Financial agglomeration (FA) is a crucial way to improve environment pollution (EP). • We built the theoretical framework of FA and EP based on the Copeland-Taylor model. • We tested the nonlinear impacts of FA on EP using the panel threshold model. • We revealed the transmission mechanism between FA and EP. [ABSTRACT FROM AUTHOR]

Considering the enlarging inter-provincial disparities in China as regards carbon emissions and carbon intensity (carbon emissions per unit gross domestic product), this paper is the first study to investigate the inter-provincial carbon imbalance by constructing and employing the Kaya-Zenga index. We use China's panel data of provincial-level carbon emissions over 1995–2016 to quantitatively measure the levels of inter-provincial imbalance and polarization in carbon emissions and carbon intensity. Further, we decompose the Kaya-Zenga index into different contributing factors both regionally and structurally and perform a scenario analysis to identify the corresponding regionally differentiated countermeasures regarding carbon emission reduction. The results show that the imbalance in carbon emissions is mainly caused by imbalances in population scale and income level, while the imbalance in carbon intensity predominantly results from imbalances in energy efficiency and energy mix. In addition, for heavy manufacturing provinces, the respective emission-reduction strategy should aim at lowering energy intensity through local technology improvement and inter-regional technology transfer. For light manufacturing and high technology provinces, carbon emission reduction is harder to be achieved; however, a mix of policies of improving energy efficiency, optimizing energy mix, and industrial upgrading should be implemented. The results of the scenario analysis indicate that reducing imbalance in carbon intensity under different scenarios can lead to a substantial reduction in carbon emissions (up to 10%). • We investigate the inter-provincial carbon imbalance within China. • We construct the Kaya-Zenga index and decompose the index into four contributors. • We use a panel data set of 30 provincial-level regions in China over 1995–2016. • Carbon imbalance is mainly caused by imbalances in population and energy efficiency. • Reducing intra-group imbalance in carbon intensity can abate carbon emissions. [ABSTRACT FROM AUTHOR]

This paper proposes a new methodology for measuring energy efficiency inequality based on the Shephard energy distance function and the "double" stochastic meta-frontier. To incorporate the regional inequality, we use three different grouping criteria, geography, city features, and strategic development goals. We also explore whether the different city grouping criteria can influence the energy efficiency. A panel data of 284 cities in China from 2003 to 2013 is used for empirical analysis. The results indicate that the regional heterogeneity has significant impact on the energy efficiency. We find that different grouping criteria affect energy efficiency, especially, the urban feature criteria. These results highlight the importance of choosing a proper grouping criteria in meta-frontier energy efficiency analysis. • The inequality of city-level energy efficiency needs evaluation. • We introduce the "double" stochastic meta-frontier method to perform analysis. • Three grouping criteria are proposed for visualizing the technology heterogeneity. • The regional heterogeneity different grouping criteria affect energy efficiency. • A proper grouping criterion is needed in meta-frontier analysis. [ABSTRACT FROM AUTHOR]