Industrial agglomeration is the main engine of economic growth and also the major source of CO2 emission that can have an effect on the social well-being of people in the built environment. This paper investigates the impact of industrial agglomeration on firms’ energy consumption intensity, using Chinese industrial firm data and Chinese industrial firm pollution emission data from 1998 to 2012. We found evidence that industrial agglomeration could effectively cut down firms’ coal consumption intensity and thus reduce the CO2 emission, which ...