Industrial Spatial Planning and Carbon Emissions: Evidence From China's Minimum Floor Area Ratio Regulation

ABSTRACT

Amid growing land constraints, vertical development has become a global trend in industrial spatial planning. However, empirical evidence on the environmental consequences of vertical industrial expansion remains scarce. This study uses the intensity of industrial minimum floor area ratio (MinFAR) regulation to capture the extent of vertical land use, evaluating its effect on industrial carbon emissions intensity by drawing on data from 285 cities in China. Results indicate that MinFAR‐driven vertical industrial land use reduces carbon emissions, with each one‐unit increase in MinFAR intensity lowering emission intensity by 5.1%. This decline operates through enhanced production coordination, industrial technological upgrading, and improved green governance and resource sharing. Notably, the technological‐upgrading channel is driven more by high‐tech scale expansion than by innovation‐output upgrading. Further evidence shows that stronger governance capacity, more diversified industries, better financial support, and stronger technological foundations strengthen the carbon‐reduction effectiveness of vertical land use. Expanding knowledge of vertical land use and its environmental implications, this study offers valuable insights for policymakers worldwide to adjust land use strategies for industrial development and carbon governance.