Urbanization, industrialization and SO 2 emissions in China: does the innovation ability of cities matter for air quality?

This paper aims to detail the relationships between urbanization, industrialization, the innovation ability of cities and local air quality in 284 cities in China using annual data. For the empirical outputs, the panel quantile regression analysis, which considers the heterogeneous nature of the data set, is employed. Initial findings indicate that (i) urbanization and industrialization negatively affect local air quality. (ii) Innovation capability of cities has a direct and improving impact on local air quality. Then, the paper estimates the moderating role of cities' ability to innovate in the polluting effect of urbanization and industrialization on local air quality. Remarkably, empirical evidence indicates that (iii) the innovation ability of cities also moderates the polluting impact of urbanization and industrialization on local air pollution. Based on the findings, the paper confirms the importance of both direct and moderator effects of the innovative environment in cities in tackling air pollution.