Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Previous studies primarily concentrate on the production cost effects of industrial agglomeration; however, its abatement cost-saving effects remain underexplored. To narrow this gap, this study explores the causal linkage between different patterns of industrial agglomeration and the marginal abatement costs of carbon dioxide emissions. To account for spatial spillover effects of industrial agglomeration, this study employs a well-preferred spatial Durbin model, selected based on various data-driven testing procedures. The results show local and spatial spillover cost-saving effects for both specialized and related diversified industrial agglomeration. By contrast, no statistically significant impact has been observed for unrelated diversified industrial agglomeration. The technological effect, synergistic emission abatement effect, and economies of scale effect are three potential channels for the abatement cost-saving effects of industrial agglomeration. This study provides new insights into how industrial spatial layout via agglomeration can be employed to achieve the dual goal of economic prosperity and cost-effective climate mitigation.