The Impact of New Energy Vehicle Industry Agglomeration on High-Quality Green Development—Evidence from China

In light of increasing environmental issues, green and environmentally friendly growth has emerged as a global consensus., making the progression of a low-carbon and eco-friendly new energy vehicle (NEV) industry essential for countries globally. This study focuses on the 26 provinces of China, employing benchmark regression, mediation analysis, spatial econometrics, and difference-in-differences models to comprehensively investigate the impact and underlying mechanisms of NEV industry agglomeration on high-quality green development, using a unified framework to measure both agglomeration and development standards, which enhances the accuracy of previous measurements using a single indicator. The findings show that NEV industry agglomeration directly promotes high-quality green development, mediated significantly by green technological innovation and public environmental awareness. Analysis reveals significant regional heterogeneity, with stronger NEV industry agglomeration in midwestern regions, areas prioritizing sustainable and low-carbon policies, and regions with advanced economic and financial systems, leading to a greater positive impact on high-quality green development. NEV industry agglomeration influences high-quality green development in neighboring regions through spatial spillover effects. The results remain robust when using instrumental variables and treating NEV-related policy formulation as a quasi-natural experiment. This study provides theoretical guidance and policy recommendations to encourage high-quality green development through NEV industry agglomeration.