Synergistic carbon emission reduction effect of the “innovation-finance” policy instrument portfolio

Abstract

[Objective] In the context of increasingly intensifying conflicts between resources and environment and economic growth, the purpose of this paper is to explore how the “innovation-finance” policy portfolio affects urban carbon emissions from the perspective of policy instrument portfolio, so as to provide policy suggestions for achieving the “dual carbon” goal and building an efficient policy coordination path. [Methods] Based on the panel data of 273 cities at the prefecture level and above in China from 2006 to 2020, this study used the “dual pilot” of innovative cities and the pilot of combining science and technology with finance to construct quasi-natural experiments, and used the multi-phase difference-in-differences (DID) model to investigate the synergistic carbon emission reduction effect of “innovation-finance” policy instrument portfolio. [Results] (1) The synergy of the “dual pilot” policy was significantly conducive to carbon emission reduction and it can exert a more obvious carbon emission reduction effect than the “single pilot” policy, and the above conclusion was still true after a series of robustness tests; (2) The “dual pilot” policy indirectly reduce carbon emissions by driving green technology innovation and accelerating talent agglomeration; (3) The synergistic carbon emission reduction effect of the “dual pilot” policy was more obvious in non-resource-based cities, cities at higher administrative levels, and cities with shorter tenured officials, and there was a more obvious synergistic carbon emission reduction effect in the scenario of promoting the integration of science and technology and finance followed by carrying out innovative city construction. [Conclusion] It is necessary to give full play to the effect of the “innovation-finance” policy portfolio, accelerate the release of carbon emission reduction dividends from policy coordination, and explore an effective path of policy coordination to achieve the dual carbon goals.

Keywords

• difference-in-differences model|collaborative empowerment|portfolio of cross-policy instruments|carbon emissions|heterogeneity