Search

Excluding externality from agglomeration, the “∩” curve has been used to depict relationship between agglomeration and pollution. This article includes relationship between pollution and externality from agglomeration of agricultural producer service. Using newly spatial econometrics which can solve the endogenous problem induced by un-observed variable omitted from linear model, the Kuznets curve with spatial structure is constructed based on spatial spillover of externality, which includes double effects from agglomeration of agricultural producer service and its externality. The results show: The “∩” curve can be used to depict relationship between agglomeration of agricultural producer service and pollution, and the “∪” curve can be used to depict relationship between pollution and externality from agglomeration of agricultural producer service. Because of differences between the two curves, we can’t always get the relationship between agglomeration of agricultural producer service and pollution. When lower or higher agglomeration, the impact from agglomeration to pollution is uncertain. And when medium agglomeration, agglomeration makes pollution heavier. [ABSTRACT FROM AUTHOR]