Has the Low-Carbon City Pilot Policy Reduced Urban Carbon Emissions in China?

Abstract

The promotion of low-carbon and ecologically friendly economic growth is widely accepted worldwide. The low-carbon city pilot policy was introduced by the Chinese government in three batches between 2010 and 2017 to address climate change. We use panel data from 277 Chinese cities from 2009 to 2019 to investigate the link between urban carbon emissions and the low-carbon city pilot policy. To alleviate the endogeneity brought on by sample selection bias, we utilize a combination of propensity score matching and the difference-in-difference model in our causal inference technique. The results demonstrate a noteworthy decrease in urban carbon emissions subsequent to the implementation of the policy; Through optimizing industrial structure, substituting clean energy, and innovating green technologies, this approach lowers urban carbon emissions; In addition, heterogeneity analysis results indicate that the carbon reduction effects in eastern and central cities are more significant than that in western cities. Finally, we provide policy recommendations on how to reduce urban carbon emissions.