High-speed railway opening, firm agglomeration and carbon emission: Evidence from China

This paper investigates whether the transportation infrastructure affects firm carbon emissions from agglomeration and firm accessibility to high-speed railway (HSR) stations perspectives. Our identification uses the opening of HSR stations in China. Our difference-in-differences estimation results show that the opening of highspeed railway (HSR) promotes firm carbon abatement. Specifically, we confirm that for one thing, the opening of high-speed railway reduces the distance constraints for factors mobility and promotes firms' innovation; for another thing, the expansion of the HSR improves resource allocation efficiency and drives the division of labor, cooperation, and agglomeration among firms. Meanwhile, we identify the moderate effect of firm accessibility to its nearest HSR stations, which positively affects the impact of the opening of HSR on firm carbon abatement. Our findings also enrich related literature and provide empirical support for policymakers.