LAUSR

This paper studies the mechanisms linking urbanisation and industrial SO2 emissions using panel data that enable us to trace the environmental impact of the urban transformation of China’s economy from a rural to a largely urban society. We provide evidence of stylised facts on spatial patterns and temporal changes of industrial SO2 emissions in China. Over time, industrial SO2 emissions show increasing levels in small and medium-sized cities but slightly decreasing levels in some large cities. The results show that urbanisation is one of the main driving forces behind emissions and the increase in the urbanisation level is likely to exacerbate emissions. Emissions are more sensitive to industrialisation than urbanisation, indicating that industrialisation remains a key industrial SO2 pollution contributor in China. Industrial emissions abatement policies in China should be designed by considering the spatial differences of emissions and the pace of urbanisation, although the increase of urbanisation is associated with benefits such as poverty reduction and economic growth. The reduction of industrial SO2 emissions requires coordinated approaches by adjusting the pace of urbanisation.