Does producer services agglomeration improve industrial energy efficiency in China?

Promoting structural transformation and energy efficiency improvement by grouping productive services is a significant action for China's targets of realizing carbon neutrality and carbon peak. This study employs the spatial Durbin model to explore the influences of the agglomeration of producer services (producer services agglomeration) on industrial energy efficiency using panel data from China, specifically from its prefecture-level cities. It turned out that the specialization producer services agglomeration has effectively improved the industrial energy efficiency of the city and its adjacent areas. However, the producer services agglomeration in diverse fields only plays a positive stimulating role in the energy efficiency standards of the city. After changing the industrial energy efficiency index, and sample size and considering endogeneity, the test results agree with the benchmark estimation outcomes. Additional research indicates that technological spillovers and manufacturing production costs exert a significant mediation influence in the process of promoting energy efficiency by producer services agglomeration. Furthermore, the producer services agglomeration has a substantial heterogeneous effect on the industrial energy efficiency due to differences in industry types of producer services. The conclusion of this article is of considerable relevance for China to rely on the producer services agglomeration to support effective energy utilization, as well as green and sustainable economic development.