Against the escalating challenges of global climate change and intensifying resource-environment constraints, exploring the green effects of industrial spatial organization has become crucial. Utilizing panel data from the Yangtze River Delta cities spanning 2011–2023, this study empirically examines the nonlinear impact of manufacturing-producer services co-agglomeration on urban green efficiency. The results reveal a significant U-shaped relationship: co-agglomeration initially suppresses efficiency due to coordination costs and congestion effects, but after crossing a specific threshold, the resulting scale economies and knowledge spillovers dominate and begin to promote green enhancement. Mechanism tests indicate that industrial upgrading serves as a direct mediating channel, while the mediating effect of green technological innovation exhibits a time lag. Further heterogeneity analysis shows that this U-shaped pattern is particularly pronounced in cities with low agglomeration levels, those not designated as low-carbon pilots, and non-resource-based cities. This study uncovers the nonlinear dynamics and key boundary conditions of the green effects arising from industrial co-agglomeration, providing an empirical basis for implementing differentiated regional spatial coordination policies.
Ma et al. (Sat,) studied this question.