Does technology innovation reduce haze pollution? An empirical study based on urban innovation index in China

Haze pollution is one of the most concerning environmental issues, and controlling haze pollution without affecting economic development is of immense significance. Using the panel data composed of PM2.5 concentration and other data from 278 cities in China between 2003 and 2016, this paper empirically investigates the impact of urban innovation on haze pollution and its transmission mechanism. Based on the fixed effect model, the research finds that increasing urban innovation significantly reduces haze pollution. Even after dealing with possible endogenous problems, the result still holds. Energy consumption and industrial agglomeration are two important transmission channels through which urban innovation affects haze pollution. Furthermore, time heterogeneity analysis shows that the negative effect of urban innovation on haze pollution increases with time. Spatial heterogeneity analysis shows that urban innovation has a more significant mitigation effect on haze pollution in eastern cities than in central and western cities in China. This paper indicates that technological innovation, as the main driving force for development, can provide vital support to China to improve the ecological environment.