Agglomeration Externality,Environmental Technology Efficiency and ESER

Using the penal data of Chinese manufacturing industries from 2001 to 2008,this paper analyzes the influences,posed by the Marshallian externalities brought by specialized agglomeration and Jacob's externalities brought by diversified agglomeration,on the environmental and industrial coordination.It tries to find out the new policy-making support for ESER.The conclusion shows: both Marshallian externalities and Jacob's externalities show an reversed U curve with environmental technology efficiency;Marshallian externalities and Jacob's externalities both work on the environment and industrial coordination.Policy-makers should make use of the beneficial factors of two different externalities to realize ESER.