Quantifying the impacts of industrial convergence on air pollution: a quasi-experimental analysis of evidence from China's "Triple Play" reform

Industrial structure change is an important cause of air pollution in China. Regarding the "Triple Play" reform (TPR) led by the Chinese government as a quasi-natural experiment of industrial convergence, this study constructs an analysis framework for the impact of industrial convergence on air pollution. Based on panel data at the Chinese city level from 2004 to 2016, this paper empirically examines the impact of industrial convergence on air pollution by using a difference-in-difference model, the propensity score matching method, and a mediation model. The results show that (1) the TPR significantly alleviates air pollution of cities; (2) the TPR reduces air pollution by improving green technological innovation and industrial structural upgrading; (3) the TPR significantly reduces air pollutants in the southern, coastal, non-resource-based cities and cities with higher technological absorption capacity, but its impact in the northern, inland, resource-based cities and cities with lower technological absorption capacity is not remarkable. This research provides feasible suggestions for the government to promote industrial convergence through deregulation policies and then reduce air pollution.