Producer services agglomeration and low-carbon economic transition: the role of economic growth target constraint

Objective. Producer services are an intermediate input factor that permeates every link in the industrial production chain and is essential to the growth of a low-carbon economy. This study aims to elucidate the connection between producer services agglomeration (PSA) and low-carbon economic transition. Methods. Based on China’s provincial panel data from 2004 to 2021, we empirically test the influence of PSA on low-carbon economic transition using a two-way fixed effects model, and utilize government work reports to construct an indicator of economic growth target constraints and its characteristics to further explore its moderating effect. Results. PSA contributes to enhancing low-carbon economic transition. The heterogeneity test finds that PSA significantly helps low-carbon economic transition in the east and west regions, but not in the central region. The quantile regression findings demonstrate that PSA is more effective at raising the level of low-carbon economic transition at the 10th and 90th quantiles, which indicates that the carbon reduction and efficiency enhancement effects of PSA play a greater role in regions with lower and higher low-carbon economic transition levels. Further research presents that the economic growth target constraint negatively moderates PSA’s impact on low-carbon economic transition, but this constraint characterized by soft constraints strengthens the positive effect of PSA on low-carbon economic transition. Implications. In view of this, the government can foster PSA in accordance with local conditions, optimize agglomeration area layout, and establish a scientific and reasonable government target management system to strengthen low-carbon and high-quality economic development.