Evaluating the CO2 abatement effects of low-carbon city policy in China: a quasi-natural experiment

Abstract

Abstract The formulation and implementation of Low-Carbon City Policy (LCCP) is an essential initiative for China to build its low-carbon society. Based on the panel data of 282 prefecture-level cities in China from 2003 to 2016, this study evaluates the effects of LCCP implementation on pilot cities’ carbon emission performance using difference-in-differences method, and then the mechanism has also been examined with a mediating effect model. The results show that: first, the LCCP implementation has increased the carbon emission performance of the pilot cities significantly, indicating that it is an effective way to promote the low-carbon transformation of Chinese cities. Second, the positive effects in CO2 performance resulting from LCCP demonstrate significant heterogeneity: in general, the cities in east China, with higher economic development level and in a larger size, achieve more significant CO2 emission reduction than their respective counterparts. The results on the mechanism test imply that the LCCP helps improve pilot cities’ carbon emission performance in three ways, including reducing energy consumption, updating the industrial structure, and promoting technological progress. Finally, some useful policy recommendations are put forward to promote China’s low-carbon city construction.

Keywords

• Low-carbon city
• Carbon emission performance
• Mechanism analysis
• Difference-in-differences method