1. Introduction
The Industrial Revolution boosted rapid global economic growth, creating an unprecedented era of prosperity. However, despite its significant economic benefits, rising pollution levels and surging energy consumption have increasingly undermined the global economy’s capacity for sustainable development and socially equitable progress [
1,
2,
3]. Consequently, the transformation to a sustainable, low-carbon economic structure has become an urgent concern for the world [
4,
5,
6]. As the global second-biggest economy, China today contributes roughly a third of the world’s yearly emissions of carbon dioxide [
7]. To promote global sustainable development, the Chinese government has established a two-phase climate action roadmap: peaking carbon emissions by 2030 followed by comprehensive carbon neutrality attainment by 2060. China’s economic trajectory is shifting from a phase of rapid expansion to one marked by low-carbon and high-quality growth [
8,
9,
10], placing greater demands on the restructuring of its energy structure. China’s prosperity is currently challenged by significant obstacles, including a high baseline of carbon emissions, a coal-dominated energy mix, and massive overall energy consumption. Therefore, advancing the establishment of a long-term mechanism for the green energy transition is essential to overcoming resource and environmental constraints and promoting sustainable economic growth.
Numerous academics have recently studied different energy transitions and emission reduction measures in the context of China’s economic growth. Some research concentrates on particular sectors, exploring how the production pattern [
11] and technological innovation [
12] influence energy use and carbon emissions. For instance, Zhang et al. [
13] estimate the energy use and carbon emissions during building projects’ construction and operation stages based on machine learning techniques, offering useful examples for reducing emissions and conserving energy in the industry. Other studies focus on how national industrial development influences energy utilization or carbon emissions, often using industry-level energy efficiency or carbon efficiency as key indicators [
14,
15]. In particular, some scholars [
16,
17] have examined the impact of industrial upgrading on energy use and carbon emissions, arguing that although such restructuring promotes area economic progress, it also directly influences the composition and effectiveness of energy utilization. Energy consumption is intrinsically linked to carbon emissions. According to Fan et al. [
18], industrial transformation is a key driver of changes in energy usage patterns, and promoting a rational industrial structure is essential for achieving China’s carbon reduction targets and enhancing its low-carbon and green development framework. Furthermore, China’s 20th National Congress report underlined promoting green and low-carbon economic and social development, which is a critical pathway to achieving high-quality growth. It emphasized that optimizing industrial and energy structures constitutes an essential means of attaining this goal. Therefore, investigating how upgrading industrial structures affects regional energy transition and low-carbon growth, as well as clarifying the mechanisms and development patterns among them, is of great significance. It can provide important guidance for optimizing the path of energy transition, easing regional emission reduction pressures, and advancing low-carbon economic growth.
The Yangtze River Economic Belt (YREB) serves as a pivotal engine for China’s economic growth. As one of the three major national strategies for optimizing economic development patterns and spatial restructuring, it occupies a strategically vital position in the regional development framework. Spanning eastern, central, and western China, the YREB integrates provinces along the basin into an internationally significant inland economic corridor. It serves as a hub of integrated regional development and a pilot zone of ecological civilization, with distinct regional advantages. By 2021, although it represented only 22% of China’s territory, it generated 46.14% of the national GDP and housed 43.3% of its people [
19], showing great development potential. However, the region also exhibits a higher intensity of energy consumption and carbon emissions. In 2017, the YREB was responsible for 41.1% of China’s total energy consumption and 44% of its total carbon emissions. It faces significant challenges in meeting carbon peaking and carbon neutrality targets while maintaining a high-quality economy [
20,
21,
22]. Therefore, promoting industrial structure upgrading to transform energy consumption patterns and effectively decoupling economic growth from carbon emissions have become critical pathways for resolving this contradiction [
23]. The 2016
Yangtze River Economic Belt Development Plan Outline emphasized innovation-driven industrial upgrading to promote energy structure adjustments and decarbonization. The 2021
Yangtze River Economic Belt Urban Coordinated Development Capability Index called for integrated efforts to improve the ecological environment, implement localized emission reduction plans based on regional conditions, and establish a coordinated and complementary spatial framework for carbon reduction. These initiatives aim to enhance resource deployment, optimize the industrial structure, shift industrial development toward low energy-consumption sectors, and steadily advance the region’s green transition process [
24,
25].
This study addresses key questions regarding current trends in energy transition and carbon emissions in the Yangtze River Economic Belt, focusing on how industrial upgrading drives these processes and identifying areas for improvement. The main contributions are as follows: (1) It examines the spatiotemporal patterns and determinants of energy transition and carbon emissions in the 11 provinces and municipalities of the YREB from 2005 to 2021, measuring energy transition from both the total energy consumption volume and the low-carbon level of the energy consumption structure. (2) A spatial Durbin panel regression model is used to analyze the direct effects of industrial upgrading on energy consumption and energy structure decarbonization. (3) This study integrates industrial upgrading, energy transition, and carbon emissions into a unified framework to examine the underlying mechanisms linking industrial restructuring to carbon emissions, addressing a gap in existing research. (4) It analyzes regional heterogeneity across the YREB’s upstream, midstream, and downstream areas, providing insights for developing region-specific carbon reduction policies. Nevertheless, while this research offers valuable insights into the dynamics of energy transition and carbon emissions across the entire YREB, it also faces limitations. The research relies on provincial-level data, which may overlook finer-grained variations at the municipal and industry levels.
This paper proceeds as follows:
Section 2 reviews the relevant literature.
Section 3 outlines the theoretical hypotheses and research objectives.
Section 4 describes the research methodology, model construction, and data sources.
Section 5 analyzes the spatiotemporal characteristics of carbon emissions, energy consumption, and energy structure transition in the YREB, and presents the empirical results based on the spatial panel model.
Section 6 provides a discussion and future outlook, and
Section 7 concludes the study with policy implications.
2. Literature Review
Reducing carbon emissions through industrial structural upgrading has become a key topic in recent scholarly research. On the one hand, some scholars have empirically demonstrated that factors such as industrial structure upgrading have driven a continuous decline in carbon emission intensity [
26,
27]. Existing literature can be broadly categorized into three methodological approaches: First, studies grounded in the Environmental Kuznets Curve (EKC) theory and environmental impact models—such as LMDI, IPAT, and STIRPAT—examined the impact of industrial structure on carbon emissions. For instance, Wang et al. [
28] and Dong et al. [
29] demonstrated that intelligent industrial upgrading influences carbon emissions both directly and indirectly through green technological progress and resource reallocation. Lu et al. [
30] used an extended STIRPAT model and InVEST’s ecosystem carbon sink estimation to identify industrial restructuring as a key driver of emission reduction across provinces in the Yangtze River Basin. Similarly, Zhan et al. [
31] confirmed the substantial inhibitory influence of industrial structure on carbon reduction by employing the Kaya identity, LMDI decomposition, and system dynamics to the Beijing–Tianjin–Hebei region. Additionally, Wu et al. [
32] used a spatial Durbin model to assess the impact of industrial upgrading on the carbon balance in the Yangtze River Economic Belt, finding more pronounced effects in midstream and downstream regions. Cai et al. [
33] further identified a moderating effect of industrial structural upgrading on carbon emissions. Second, efficiency-based studies quantify the effect of industrial upgrading on carbon performance. For instance, Sun et al. [
34] used a Super-EBM to assess how structural rationalization and advancement narrow regional disparities in carbon emission efficiency. The third approach utilizes machine learning methods. Using a random forest model, Yu et al. [
35] analyzed the carbon intensity of the construction sector and highlighted the contributions of industrial upgrading, technological advancement, and the clean energy transition to future carbon mitigation. Furthermore, research on industrial collaboration and agglomeration reveals their role in enhancing resource allocation efficiency and reducing emissions. Li et al. [
36] used a spatial Durbin model to identify an inverted U-shaped relationship between the co-agglomeration of manufacturing and producer services and high-quality development. He et al. [
37], based on the SBM model, calculated Green TFP efficiency of the Yangtze River Delta urban agglomeration (YRD) and demonstrated that such co-agglomeration reduces emissions through enhanced ecological-economic efficiency.
However, in practice, industrial restructuring reduces carbon emissions by reshaping patterns of energy consumption [
38,
39]. For instance, Tao et al. [
40] confirmed that structural upgrading improves local energy efficiency. Thus, energy consumption serves as a key mediating factor in the correlation between industrial upgrading and the release of carbon. Existing studies have predominantly treated either industrial structure or energy use as mediating variables. According to Zhao et al. [
41] and Wang et al. [
42], industrial structural adjustment indirectly lowers emissions by improving energy efficiency. In their study of industrial transformation and upgrading demonstration zones, Li et al. [
43] found that inefficient industrial structures increase fossil fuel dependence, while green innovation and better resource allocation help curb carbon intensity. Feng et al. [
44] demonstrated the combined impact on carbon reduction through a dual mediation path involving energy low-carbon restructuring and industrial structure upgrading. Some scholars have examined the topic with a focus on regional energy endowment conditions, arguing that energy-dependent industries act as positive mediators of emissions [
45]. Others have developed multi-objective industrial optimization models constrained by energy use and carbon reduction goals [
46,
47]. To evaluate the effects of interregional industrial structure optimization in the YRD on economic growth, energy consumption, and carbon emissions, Zhu et al. [
48] employed SBM efficiency analysis, confirming its effectiveness in emission control. Building on these insights, this study further explores the direct mechanisms linking industrial restructuring and energy transition and evaluates their impact on carbon emissions, thereby filling a critical research void in current academic research.
Previous research on energy consumption has primarily focused on urbanization [
49,
50], economic development [
51], and household consumption [
52], discussing overall energy use and efficiency across land, economic, population, and ecological dimensions [
53,
54]. Recently, scholars have shifted attention toward how the energy consumption structure functions, emphasizing that fostering clean energy use [
55] and decarbonizing energy structures [
56] are critical for carbon emission reduction. In order to correctly depict the link between total energy consumption and carbon emissions throughout urbanization, highlighting localization distinctions, Yao et al. [
57] developed an “inverse N-shaped” curve in place of the traditional “inverse U-shaped” curve. Liu et al. [
58] demonstrated that transforming the energy consumption structure significantly lowers emissions in renewable energy demonstration municipalities. Zhu et al. [
59] applied system dynamics to analyze data from seven industrial sectors in China, showing that optimizing energy consumption structure stimulates tertiary sector demand, making it a necessary step in the energy transition. Furthermore, some studies have examined both energy consumption and carbon emissions, focusing on total energy use and structural changes during the energy transition. Xu et al. [
60] decomposed energy consumption into “total amount” and “structure”, evaluating the feasibility of China’s targets for reducing carbon emissions. Fan et al. [
61] and Yin et al. [
62] developed a low-carbon indicator that considers both total and structural effects, revealing their negative impact on carbon emissions. Therefore, both total energy consumption and changes in energy structure are crucial in understanding the transition of energy consumption patterns [
63,
64].
Overall, although a substantial body of research has examined the individual relationships between industrial upgrading, energy transition, and carbon emissions, or combinations of these factors, studies that integrate all three into a unified analytical framework remain scarce. Additionally, there is still room for further exploration of these topics within the boundaries of the YREB. Therefore, this research will focus on the YREB region, investigating the effects of industrial structure upgrading on energy transition from the perspectives of total energy consumption and energy structure transformation, as well as the underlying mechanisms of carbon emissions, and offer recommendations for regional emission-lowering policies.
5. Results
5.1. Analysis of Carbon Emission and Energy Utilization Characteristics
5.1.1. Carbon Emission Characteristics
Figure 2a shows the annual changes in carbon emissions across YREB’s 11 provinces. From 2005 to 2021, emissions exhibited an overall upward trend, ranging from 1.94 to 9.27 tons per capita. Growth was rapid before 2013 but slowed afterward, driven by key policies such as the 2012–2013 Air Pollution Prevention and Control Action Plan, carbon trading pilots, industrial relocation, increased clean energy adoption, and the establishment of a carbon accounting system in 2011. Regionally, Shanghai, Zhejiang, Jiangsu, Anhui, and Guizhou maintained higher per capita emissions throughout the study period. Analysis suggests that coastal and industrially advanced provinces like Shanghai and Zhejiang experienced higher emissions due to rapid urbanization and energy-intensive industries. Meanwhile, regions such as Guizhou (upstream) faced challenges associated with resource dependence, where the trade-off between “high-carbon development inertia” and “low-carbon transition demands” slowed down their decarbonization efforts.
As shown in
Figure 2b, per capita carbon emissions followed a core-to-periphery diffusion pattern, with Shanghai, Zhejiang, Jiangsu, Anhui (downstream), and Guizhou (upstream) as emission hubs. The higher emissions in the upstream provinces are attributed to their reliance on traditional and ongoing industrial transfers in these areas, highlighting the need for a more robust ecological compensation mechanism to support the low-carbon transition in resource-dependent regions. In contrast, the middle-stream transition zone has relatively lower emissions. These dynamics underscore the challenges faced by different regions in balancing economic growth with sustainable, low-carbon development.
5.1.2. Energy Consumption Intensity Characteristics
Figure 3 shows the temporal–spatial variation in energy consumption intensity among the 11 provinces. From 2005 to 2021, energy consumption intensity generally followed a rise-and-fall pattern, peaking around 2013–2016. The energy consumption intensity of each year presents a gradient decline from upstream to downstream. By 2021, energy intensity had significantly declined in most regions, except for Guizhou and Yunnan, which remained in a high-energy consumption state. It is attributed to the fact that the downstream Yangtze River Delta, with its higher economic development and industrial upgrading, has improved regional energy productivity growth and efficiency improvements in key industries. In the midstream, industrial relocation has led to a slower decline in energy intensity compared to downstream regions, as industries in these areas are still undergoing transition and technological upgrades. Meanwhile, the analysis suggests areas with high energy consumption such as Yunnan and Guizhou reflect strong energy dependence and a high proportion of energy-intensive industries, thus facing huge challenges in energy transformation.
5.1.3. The Decarbonization Level of Energy Consumption Structure Characteristics
Figure 4 illustrates a spatiotemporal variation in the decarbonization transition in energy consumption across the YREB. Throughout the research timeframe, all regions showed a steady increase in low-carbonization level of energy structure, indicating a rising share of non-fossil energy and a significant decline in carbon-containing energy consumption, showing a continuous progress in decarbonization. Zhejiang, Shanghai, Jiangsu, and the Sichuan-Chongqing region have formed efficient decarbonization clusters, while Yunnan, Guizhou, and Jiangxi lag behind in the decarbonization transition. The analysis suggests that coastal industrialized regions have a higher level of industrial upgrading, with strong awareness of technological advancement and clean energy adoption. By contrast, the Sichuan-Chongqing region has significant clean energy substitutes, such as hydropower. Meanwhile, regions like Yunnan and Guizhou are highly reliant on coal, resulting in weaker energy decarbonization.
5.2. Analysis of Spatial Correlation
We conducted a spatial autocorrelation analysis of energy consumption, energy structure decarbonization levels, and carbon emissions among various areas to further examine their spatial clustering patterns. This study considers the Moran’s I calculation with geographical distance and adjacency distance weights.
Table 2 displays Moran’s I values and their significance. Examining the results, energy intensity, the low-carbonization level of energy consumption structure, and per capita carbon emissions passed the significance test. Specifically, the statistical values for energy intensity ranged from 0.34 to 0.55, and for the low-carbonization level of energy consumption structure, the statistical values ranged from 0.20 to 0.42, indicating robust and pronounced spatial dependence. The statistical values for per capita carbon emissions exhibited a positive correlation that varied between 0.14 and 0.40.
The spatial impact is clearer with geographic distance weighting.
Figure 5 shows Moran’s I scatter plots based on geographical distance weights for the years 2005 and 2021. It can be observed that most provinces show clusters of both high and low values in energy intensity, low-carbonization level of energy consumption structure, and carbon emissions. Hence, employing spatial econometric models for the subsequent analysis is imperative.
5.3. Spatial Regression Results
In this part, we examine the relationships among factors through spatial regression. Firstly, after determining the basic form of the SDM, we use the Hausman test to determine if these measurement models should adopt the fixed or random effect. This study considers the Hausman test under two distance weights, as shown in
Table 3. The results indicate that we can toss out the null hypothesis at the 1% significance threshold for both total and structural effect models of energy consumption, suggesting the fixed effects model should be adopted for regressions. In contrast, the Hausman statistic is negative for the carbon emissions model, supporting the application of random effects.
To construct a valid spatial panel model, LM tests and Wald tests are performed again on the spatial measurement model data determined after the pattern is established. This method helps further evaluate whether the selected spatial econometric model’s parameter estimates are reasonable. LM tests and Wald tests for both scenarios comparing SAR and SEM models are summarized in
Table 3. It can be observed that, whether under the geographical distance or spatial adjacency weight matrix, LM tests as well as Wald tests for the fixed effects model of total energy consumption and structural effects can remove the null hypothesis at the 1% threshold. Meanwhile, for the random effects model of carbon emissions, both LM tests and Wald tests can remove the null hypothesis at a 1% threshold. Therefore, the SDM cannot degenerate into SAR and SEM. Through these two tests, the rationale and accuracy of using the Spatial Durbin model are established.
The specific regression results are presented in
Table 4. The advancement of industrial structure exhibits a U-curve relationship with total energy consumption intensity, which can be seen in column (1) of
Table 4. This result implies that the regional energy consumption intensity continuously decreases as the industrial structure evolves. It begins to promote energy consumption in the region after reaching a certain level of industrial structure restructuring. Unlike the traditional inverted U-shaped relationship, this unique U-shaped pattern can be credited to the specific development context and regional features of the YREB. As a strategic corridor, the YREB has experienced a pressing need for rapid upgrading in the last ten years. While the state has promoted the development of underdeveloped regions, it has also strengthened environmental regulations in more economically advanced areas, driving industrial revolution and innovation. This results in a quick shift transformation during the early stages of industrial upgrading, with technological advancements and industrial clustering accelerating the process, which has greatly reduced the share of high-carbon industries, improved energy efficiency, and optimized resource coordination, thereby significantly lowering energy consumption. In the second phase of industrial upgrading, energy consumption increases due to several factors. First, the vast geographic scope of the YREB means that regions are at different stages of upgrading. In some areas, energy-intensive industries continue to expand, while urbanization and population influx drive up resource and infrastructure energy consumption. Second, as industrial upgrading enters a period of stable economic growth, emerging industries drive capacity growth and energy efficiency improvements, further promoting energy consumption. Additionally, the YREB’s abundant resources and widespread use of alternative energy may lead to higher energy consumption. These factors highlight the positive impact of the second phase of industrial upgrading on energy consumption. Consequently, prioritizing energy conservation and lower emissions measures is paramount in this stage.
In
Table 4, column (2) examines the regression of industrial upgrading on the low-carbonization level of energy consumption from a structural effect perspective, revealing a U-shaped impact. The analysis reveals that the improvement of industrial structure in the YREB indeed positively impacts the decarbonization of energy consumption. For example, industrial upgrading has facilitated the transformation of energy-intensive industries, enabling resource-dependent inland areas to break free from traditional economic constraints, and driving a shift toward technology-intensive, low-energy-consuming sectors in the traditional sectors. However, the YREB’s progression is imbalanced. In regions with incomplete industrial transformation and economic growth pressures, such as less-developed inland areas and the early stages of industrial upgrading in coastal areas, the rebound effect of improved energy efficiency significantly stimulates producers to generate more demand for high-carbon energy consumption. This negatively impacts the decarbonization of the energy consumption structure. The analysis suggests that during initial industrial upgrading, the adverse effect on energy consumption decarbonization significantly exceeds the benefits. As industrial upgrading progresses and the low-carbon energy-based production system matures, along with the growing technological spillovers in developed regions and the industrial transfer strategy, the negative impact gradually diminishes while the positive effects increase. This dynamic makes decoupling economic growth from carbon emissions increasingly achievable.
The results in column (3) indicate the industrial structure upgrading consistently suppresses carbon emissions, while energy consumption intensity and the low-carbonization level of the energy consumption structure, respectively, increase and decrease emissions. We can draw the following conclusions regarding the mechanism of industrial upgrading’s impact on carbon emissions combining the two curves of industrial upgrading on total energy consumption and structural effects discussed earlier. Specifically, in the early stages of industrial restructuring, the significant decrease in total energy consumption resulting from industrial upgrading offsets the influence of structural effects despite an increase in carbon content in the energy consumption structure. The net effect is the reduction in emissions at the stage. As industrial advancement progresses, the low-carbon level of the energy consumption structure continues to improve. Although the rapid expansion of emerging industries’ production capacity to drive economic growth significantly increases overall energy consumption, the large-scale implementation of clean and renewable energy solutions are helping to mitigate this environmental impact [
101]. Under the dual effects of total energy usage as well as the shifting energy composition, carbon output continues to decrease. It suggests that the decarbonization trend in industrial upgrading positively impacts carbon emissions, balancing industrial development, economic growth, and emissions. Ultimately, the shift of regional production practices supports the gradual realization of high-quality development in the YREB. This conclusion underscores the significant potential for the sustainable economic growth of a region, indicating that, despite potential negative effects on energy consumption and structural decarbonization during industrial upgrading, the process still contributes to overall emission reduction and guides the region toward a greener, lower-carbon future.
In summary, the mechanism of industrial upgrading in terms of carbon emissions is complex. Results of regression using an adjacency distance weight matrix, as shown in columns (4)–(6), are generally compatible with the results using the geographical distance mentioned. This reaffirms the intrinsic mechanism by which industrial upgrading affects carbon emissions by transforming energy consumption patterns. This analysis provides a profound understanding of the impact of industrial advancement on emissions, exploring dual effects of energy consumption pattern transformation at different stages. This result also highlights the positive influence of the trend towards low-carbonization on carbon emissions.
5.4. Robustness Discussion
We tested different scenarios by replacing key variables (RV), incorporating lagged indicators (LI), and introducing additional factors (LF) to strengthen the dependability of spatial regression outcomes. The results are shown in
Table 5. All subsequent analyses employ the geographical distance-based regression method, given that the model performed better with the geographical distance matrix.
Firstly, we substituted the level of industrial hierarchy upgrading () with the level of industrial factor upgrading () to highlight changes in labor factor proportions during the shift from lower to higher industrial structure levels (see columns (1)–(3)).
Secondly, we explored fixed-effects regression with a one-period lag for all indicators to address endogeneity concerns (see columns (4)–(6)).
Finally, we introduced the consideration of the industrial synergy aggregation factor () on emissions (column (7)). Findings confirm the stability of the fixed-effects regression, revealing industrial clustering’s positive influence on carbon emissions. Analysis suggests that industrial clustering in the YREB primarily involves the agglomeration of productive service industries and manufacturing sectors. It proves beneficial for lowering carbon emissions through several mechanisms, such as the rational allocation of industrial resources, improved technical efficiency, and shared infrastructure. However, its negative effects include the excessive concentration of production factors and the potential lag of the service sector in meeting the manufacturing industry’s production demands, leading to a relatively large increase in pollutant emissions. Overall, this results in a net promotion of emissions. Therefore, it is believed that the YREB’s industrial synergy emission reduction mechanism should be specifically implemented and improved.
The analysis and regression above validate the model’s robustness.
5.5. Regional Heterogeneity
Due to the vastness of the Yangtze River Basin, notable disparities in industrial organization and energy utilization exist among the upstream, midstream, and downstream areas. To better analyze how industrial restructuring affects carbon emissions across different regions, we divided the YREB into three zones: upstream (Chongqing, Sichuan, Yunnan, and Guizhou), midstream (Jiangxi, Hubei, and Hunan), and downstream (Shanghai, Jiangsu, Zhejiang, and Anhui). We aim to explore each area’s variations in how industrial upgrading affects carbon emissions by independently examining each section. The results in
Table 6 show that the effects of energy use and industrial structure upgrading on emission intensity exhibit significant regional heterogeneity across the YREB. However, overall, carbon emissions are generally suppressed. Specifically, the significance of industrial restructuring increases from upstream to downstream, with the upstream region showing the weakest influence. The weak impact of industrial upgrading on emissions in upstream regions is essentially a complex result of the interplay among regional development gradients, industrial transfer paths, as well as institutional environments. Firstly, the upstream regions mainly serve as the receiving end of industrial transfer in the river basin’s division of labor, characterized by a high-carbon development model. Secondly, their industrial upgrading mainly involves processing stages of the industrial chain, such as the assembly of servers at the Guizhou big data center, while high-value-added stages like research and development, design, and others are still concentrated downstream. Therefore, the decrease in emission intensity per unit of output remains limited. Furthermore, coal consumption in the upstream provinces shows a dependency inertia, and there is insufficient clean energy consumption. The delayed energy transition undermines the effectiveness of emission reductions achieved through industrial structure modernization. Additionally, upstream regions are constrained by development gradients, with inadequate technological innovation and policy tool coverage. The ecological value cannot be fully marketized, industrialization is delayed, and the region remains dependent on resource-based endowments, adding more resistance to de-industrialization during the phase of industrial advancement.
Conversely, midstream and downstream regions are at a crucial stage of transformation and upgrading, showing a high sensitivity of emissions to industrial upgrading levels. Midstream regions are notably influenced by policy and market-driven dynamics. For example, Hubei’s carbon trading market pilot program covers key enterprises, significantly improving energy efficiency. Additionally, green entry standards for industries taking over industrial transfers in the region have been raised (e.g., Jiangxi prohibits projects with energy consumption intensity exceeding the industry average). This has led to effective synergy between industrial upgrading and policies. Meanwhile, the downstream areas have advanced innovative technology, with green technologies growing steadily, and the penetration of the cconomic digitalization strengthening. Simultaneously, the regional environmental regulation intensity index is relatively high, which forces enterprises to achieve emission reduction transformation through technological substitution rather than end-of-pipe treatment.
Additionally, as industrial transfer mainly occurs in the downstream regions, the industries being transferred are relatively underdeveloped (such as resource processing and labor-intensive industries), leading to a substantial bump in carbon output in the receiving areas. Therefore, every unit improvement in the low-carbon level of the energy consumption structure will significantly impact carbon emissions in upstream and midstream areas. The impact of energy consumption intensity on emissions is most pronounced in upstream and midstream areas. However, in downstream areas, where industrial upgrading is at a more advanced stage, the effect of energy consumption on carbon output is more limited.
Based on this, we believe that the upstream regions currently should decrease reliance on carbon-intensive energy. This can be achieved by improving ecological carbon offset mechanisms, accelerating the use of hydropower and clean energy, developing low-carbon economies to replace traditional resource-based industries, and promoting energy transitions in towns to accelerate low-carbon development and enter a reasonable industrial upgrading process. The midstream regions need to reduce energy use, and given the current development context, industrial upgrading should be promoted reasonably. Policies such as improving the carbon market linkage system and carbon budgets for industrial transfers should be implemented, and advanced manufacturing clusters and green circular economies should be cultivated. The downstream regions are now in the latter phase of industrial progress, with industrial upgrading crucial for achieving emission reductions. Therefore, efforts should be made to strengthen digital-enabled manufacturing, transition to productive services, and utilize fiscal and tax incentives along with market-based regulatory measures. Moreover, regional heterogeneity highlights the challenges posed by varying development levels within the YREB, emphasizing the necessity of strengthening inter-regional cooperation. By facilitating the sharing of resources, technologies, and knowledge, energy transition can be accelerated, and sustainable economic growth promoted. For example, service-oriented cities in downstream regions can collaborate with midstream and upstream areas to transfer low-carbon technologies and facilitate the green migration of industries. Furthermore, cross-regional cooperation can align policy objectives, fostering more coordinated low-carbon transition strategies and minimizing redundant efforts. This underscores the importance of enhancing urban cooperation and industrial collaboration to advance low-carbon growth throughout the YREB.
7. Conclusions
7.1. Research Conclusions
Our research analyzes the spatiotemporal distribution of regional industrial upgrading, energy transition, and carbon emissions based on provincial statistics of the YREB spanning 2005 to 2021. Utilizing the SDM model, it underscores the pivotal influence of industrial upgrading on energy consumption patterns and carbon emission trends in the YREB. Key conclusions include: (1) Carbon emissions and energy decarbonization have demonstrated a general upward trend, with higher values observed in both upstream and downstream regions. Energy intensity initially rises and then declines, progressively decreasing from upstream to downstream. (2) A U-shaped correlation exists between industrial upgrading and energy consumption, initially lower energy consumption, but later, production expansion, increased energy demand, along with the rebound effect, result in a rise in total energy consumption. (3) The relationship between industrial upgrading and energy structure decarbonization follows a U-shaped pattern. Initially, the positive effects of industrial upgrading (such as technological progress and clean energy use) are outweighed by negative effects (such as reliance on high-carbon energy during early economic stages), inhibiting decarbonization. Over time, the positive effects surpass the negative ones, facilitating energy structure decarbonization. (4) Heterogeneity analysis indicates that emission reduction effects of industrial upgrading are more noticeable in the midstream, as well as downstream regions, where energy transition is crucial to reducing emissions. Therefore, emission reduction strategies should be region-specific, accounting for local development and resource conditions.
7.2. Research Implications
Conclusions of this paper offer critical guidance to policymakers and industry leaders for promoting low-carbon development in the YREB. Firstly, from the perspective of different stages of industrial upgrading, in early and mid-stages, the level of decarbonization in energy structure needs to be improved. Efforts should concentrate on expanding the clean, alternative energy utilization and prioritizing the reduction in dependency on carbon-intensive sectors. In the industrial upgrading’s later stages, as energy consumption continues to rise, the focus should shift to promoting innovative energy-saving strategies and regulations to slow the growth of energy consumption. Secondly, regarding regional distribution differences, upstream areas are constrained by regional development gradients, industrial transfer pathways, and institutional environments. Efforts should focus on reducing reliance on high-carbon energy, strengthening ecological compensation, and providing technological support. In midstream areas, where policy and market forces are strong, the focus should be on responding to policies that accelerate energy use and industrial upgrading while raising the green standards for industrial transfer. Downstream areas, currently undergoing critical stages of transformation, should prioritize innovation incentives and the shift toward the service industry. Furthermore, strengthening the coordination among regional cities and industries is conducive to the overall emission reduction process. These strategies are crucial for achieving the carbon peak and carbon neutrality goals of the YREB.
7.3. Policy Recommendations
The subsequent policy suggestions are presented:
Vigorously promote industrial structure upgrading and foster synergy among industries. Industrial restructuring propels a profound transformation in energy structure, crucial for local economic development decoupled from carbon emissions. It is suggested that the government should incentivize companies to invest in technology, enhance efficiency, and drive industries towards greater intelligence and sophistication. In addition, improving fiscal incentives and tax policies to boost the competitiveness of the companies is also necessary. In exploring industrial synergy for emission reduction, it is believed that the government is able to guide optimized industrial layout and facilitate interdepartmental, cross-industry collaboration mechanisms. It is also believed that a more significant carbon emission reduction can be achieved through jointly formulating carbon reduction goals and plans, leveraging the spatial effects of industrial synergy clustering, facilitating effective spatial circulation of resources, and addressing resource mismatches.
Accelerate the pace of optimizing the energy structure, paying attention to potential energy rebound effects and ensuring a smooth energy transition. In terms of energy utilization, we emphasize the importance of enhancing energy efficiency. The government is supposed to intensify efforts to improve energy efficiency and incentivize firms to use sustainable energy and advanced technology to decrease per-product energy use. Furthermore, focusing on the negative impacts of energy rebound effects is necessary. Such as regular assessments and monitoring of implemented energy-saving measures to ensure their anticipated effects, formulations of comprehensive energy policies covering technological innovation, markets, and value drive sustainable energy development and lower overall consumption. Additionally, the government ought to foster broad implementation of eco-friendly energy sources by policy guidance and market incentives, especially in emerging industries. Moreover, establishing energy harmony in the YREB and optimizing the allocation of energy resources can reduce energy waste.
Tailor policies based on local conditions, strengthen the effective empowerment of the industry–energy structure upgrading on carbon emissions across different times and spaces. The mechanisms for inhibiting carbon emissions vary at different stages of industrial advancement, and the impact of inhibiting emissions has significant regional differences in the YREB. This means that provinces should tailor strategies for high-quality industrial development based on their unique characteristics. For example, developed downstream regions with advanced industrial upgrading should capitalize on their high-tech industries, accelerate the shift from manufacturing to services, and implement energy-saving measures to mitigate rebound effects. Additionally, they can drive industrial upgrading in midstream and upstream regions through innovation and capacity spillovers. Midstream regions, currently in a critical phase of industrial transformation, should optimize their energy mix and strengthen market mechanisms. By leveraging existing industrial infrastructure, they can foster innovation clusters and set higher environmental standards for industrial transfers to ensure sustainable growth. Upstream regions should reassess their industrial resource structure and development strategies while prioritizing ecological protection. Strengthening ecological compensation mechanisms, enhancing emission reduction policies, and strategically utilizing limited resources will be key to accelerating energy transition and industrial upgrading.