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<p>This paper conducts a comprehensive analysis of the effects of reducing market segmentation on pollution emissions, leveraging panel data from 286 Chinese cities between 2010 and 2020. The key findings are: (1) Market segmentation markedly exacerbates urban pollution emissions, with a noted marginal effect of 0.0303. This suggests that diminishing market segmentation can enhance urban environmental quality, with the positive trend growing over time. (2) The analysis of underlying mechanisms reveals that breaking down market segmentation boosts urban environmental performance through economic concentration. Significantly, the intermediary role of diverse agglomeration is pronounced, with the relative impact of three primary intermediaries ranking as follows: knowledge spillovers &gt; labor pool &gt; sharing of intermediate inputs. (3) Specifically, the transmission pathway for the labor pool is through the allocation of human capital. For intermediate input sharing, it operates via labor productivity and the structural evolution of industries, with the mediating influence of industrial organization rationalization being particularly noticeable. In the case of knowledge spillovers, the transmission channels are the degree of green innovation and pollution treatment technology, where the intermediary impact of the quality of green innovation stands out. (4) The study also identifies distinct variances in the contexts of financial development, governmental competition, resource dependency, and environmental regulatory frameworks. These variations further underscore the complexity and multifaceted nature of the issue at hand.</p>

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Reducing pollution and carbon emissions: does eliminating market segmentation enhance environmental performance?

  • 期刊论文

  • 发表日期：

    2026年7月6日

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  • Mingyue Du,
  • Fangfang Wang,
  • Feifei Li,
  • Zhaohui Liu

摘要

This paper conducts a comprehensive analysis of the effects of reducing market segmentation on pollution emissions, leveraging panel data from 286 Chinese cities between 2010 and 2020. The key findings are: (1) Market segmentation markedly exacerbates urban pollution emissions, with a noted marginal effect of 0.0303. This suggests that diminishing market segmentation can enhance urban environmental quality, with the positive trend growing over time. (2) The analysis of underlying mechanisms reveals that breaking down market segmentation boosts urban environmental performance through economic concentration. Significantly, the intermediary role of diverse agglomeration is pronounced, with the relative impact of three primary intermediaries ranking as follows: knowledge spillovers > labor pool > sharing of intermediate inputs. (3) Specifically, the transmission pathway for the labor pool is through the allocation of human capital. For intermediate input sharing, it operates via labor productivity and the structural evolution of industries, with the mediating influence of industrial organization rationalization being particularly noticeable. In the case of knowledge spillovers, the transmission channels are the degree of green innovation and pollution treatment technology, where the intermediary impact of the quality of green innovation stands out. (4) The study also identifies distinct variances in the contexts of financial development, governmental competition, resource dependency, and environmental regulatory frameworks. These variations further underscore the complexity and multifaceted nature of the issue at hand.