Environmental pollution, manufacturing cost disease and structural change.

Environmental pollution destroys the sustainable development of industries worldwide, and its effect on structural changes is the focus of discussion. This paper constructs a model of the structural change of environmental pollution impacts and then, empirically estimates using panel data of Chinese cities from 2003 to 2020. The paper found that the more manufacturing pollutants are discharged, the more serious the manufacturing cost disease(MCD). Compared with low-productivity manufacturing, environmental pollution in high-productivity industries increases sector costs more. Then, this paper verifies that MCD and real wages are two key channels through which pollution emissions affect the share of the manufacturing sector. [ABSTRACT FROM AUTHOR]