IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v12y2023i8p1639-d1221596.html
   My bibliography  Save this article

The Effects of the Low-Carbon Pilot City Program on Green Innovation: Evidence from China

Author

Listed:
  • Jinchao Huang

    (Renmin Business School, Renmin University of China, Beijing 100872, China)

  • Shuang Meng

    (School of International Trade and Economics, Central University of Finance and Economics, Beijing 100081, China)

  • Jiajie Yu

    (Business School, Beijing Normal University, Beijing 100875, China)

Abstract

This study examines the effectiveness of the low-carbon pilot city program in promoting green innovation outcomes in China. Using a time-varying difference-in-differences model based on 277 cities from 2003 to 2019, this study finds that the implementation of the low-carbon pilot city program has a positive and significant impact on city-level green innovation outcomes. The policy effect is heterogeneous across different urban infrastructure characteristics, including geographic location, city scale, factor endowment, carbon emission intensity, and ICT infrastructure. This study provides important insights into the effectiveness of low-carbon policies in promoting green innovation and has important implications for policymakers and practitioners who are interested in promoting sustainable development in emerging economies.

Suggested Citation

  • Jinchao Huang & Shuang Meng & Jiajie Yu, 2023. "The Effects of the Low-Carbon Pilot City Program on Green Innovation: Evidence from China," Land, MDPI, vol. 12(8), pages 1-26, August.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:8:p:1639-:d:1221596
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/12/8/1639/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/12/8/1639/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ernst, Holger, 2001. "Patent applications and subsequent changes of performance: evidence from time-series cross-section analyses on the firm level," Research Policy, Elsevier, vol. 30(1), pages 143-157, January.
    2. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    3. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    4. Mao, Wenxin & Wang, Wenping & Sun, Huifang & Yao, Peiyi & Wang, Xiaolei & Luo, Dang, 2021. "Urban industrial transformation patterns under natural resource dependence: A rule mining technique," Energy Policy, Elsevier, vol. 156(C).
    5. Eiadat, Yousef & Kelly, Aidan & Roche, Frank & Eyadat, Hussein, 2008. "Green and competitive? An empirical test of the mediating role of environmental innovation strategy," Journal of World Business, Elsevier, vol. 43(2), pages 131-145, March.
    6. Yufei Wang & Qijiao Song & Jijiang He & Ye Qi, 2015. "Developing low-carbon cities through pilots," Climate Policy, Taylor & Francis Journals, vol. 15(sup1), pages 81-103, December.
    7. Dehejia, Rajeev, 2005. "Practical propensity score matching: a reply to Smith and Todd," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 355-364.
    8. Jeremy Galbreath, 2019. "Drivers of Green Innovations: The Impact of Export Intensity, Women Leaders, and Absorptive Capacity," Journal of Business Ethics, Springer, vol. 158(1), pages 47-61, August.
    9. Lu Wang & Wenzhong Ye & Lingming Chen, 2021. "Research on Green Innovation of the Great Changsha-Zhuzhou-Xiangtan City Group Based on Network," Land, MDPI, vol. 10(11), pages 1-15, November.
    10. Shrestha, Ram M. & Shakya, Shree Raj, 2012. "Benefits of low carbon development in a developing country: Case of Nepal," Energy Economics, Elsevier, vol. 34(S3), pages 503-512.
    11. Mourad Dakhli & Dirk De Clercq, 2004. "Human capital, social capital, and innovation: a multi-country study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 107-128, March.
    12. Janine Fleith Medeiros & Gabriel Vidor & José Luís Duarte Ribeiro, 2018. "Driving Factors for the Success of the Green Innovation Market: A Relationship System Proposal," Journal of Business Ethics, Springer, vol. 147(2), pages 327-341, January.
    13. Ning Xu & Desen Zhao & Wenjie Zhang & He Zhang & Wanxu Chen & Min Ji & Ming Liu, 2022. "Innovation-Driven Development and Urban Land Low-Carbon Use Efficiency: A Policy Assessment from China," Land, MDPI, vol. 11(10), pages 1-21, September.
    14. Cheng, Yuanyuan & Du, Kerui & Yao, Xin, 2023. "Stringent environmental regulation and inconsistent green innovation behavior: Evidence from air pollution prevention and control action plan in China," Energy Economics, Elsevier, vol. 120(C).
    15. Garfield Wayne Hunter & Gideon Sagoe & Daniele Vettorato & Ding Jiayu, 2019. "Sustainability of Low Carbon City Initiatives in China: A Comprehensive Literature Review," Sustainability, MDPI, vol. 11(16), pages 1-37, August.
    16. Margarita Angelidou, 2017. "The Role of Smart City Characteristics in the Plans of Fifteen Cities," Journal of Urban Technology, Taylor & Francis Journals, vol. 24(4), pages 3-28, October.
    17. Yan Han & Jianming Cai & Enpu Ma & Shanshan Du & Jing Lin, 2023. "Understanding Smart City Practice in Urban China: A Governance Perspective," Sustainability, MDPI, vol. 15(9), pages 1-21, April.
    18. Wang, Jue, 2018. "Innovation and government intervention: A comparison of Singapore and Hong Kong," Research Policy, Elsevier, vol. 47(2), pages 399-412.
    19. Shumin Dong & Yuting Xue & Guixiu Ren & Kai Liu, 2022. "Urban Green Innovation Efficiency in China: Spatiotemporal Evolution and Influencing Factors," Land, MDPI, vol. 12(1), pages 1-13, December.
    20. Rosa Dangelico & Devashish Pujari, 2010. "Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability," Journal of Business Ethics, Springer, vol. 95(3), pages 471-486, September.
    21. Landon Kleis & Paul Chwelos & Ronald V. Ramirez & Iain Cockburn, 2012. "Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity," Information Systems Research, INFORMS, vol. 23(1), pages 42-59, March.
    22. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    23. Shaojian Chen & Hui Mao & Junqin Sun, 2022. "Low-Carbon City Construction and Corporate Carbon Reduction Performance: Evidence From a Quasi-Natural Experiment in China," Journal of Business Ethics, Springer, vol. 180(1), pages 125-143, September.
    24. Shuang Meng & Huan Yan & Jiajie Yu, 2022. "Global Value Chain Participation and Green Innovation: Evidence from Chinese Listed Firms," IJERPH, MDPI, vol. 19(14), pages 1-17, July.
    25. Jingbo Liu & Haoyuan Feng & Kun Wang, 2022. "The Low-Carbon City Pilot Policy and Urban Land Use Efficiency: A Policy Assessment from China," Land, MDPI, vol. 11(5), pages 1-18, April.
    26. Colenbrander, Sarah & Gouldson, Andy & Sudmant, Andrew Heshedahl & Papargyropoulou, Effie, 2015. "The economic case for low-carbon development in rapidly growing developing world cities: A case study of Palembang, Indonesia," Energy Policy, Elsevier, vol. 80(C), pages 24-35.
    27. Juan M. Villa, 2016. "diff: Simplifying the estimation of difference-in-differences treatment effects," Stata Journal, StataCorp LP, vol. 16(1), pages 52-71, March.
    28. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
    29. Qian, Xiangyan & Wang, Di & Wang, Jia & Chen, Sai, 2021. "Resource curse, environmental regulation and transformation of coal-mining cities in China," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shuang Meng & Pengxiang Wang & Jiajie Yu, 2022. "Going Abroad and Going Green: The Effects of Top Management Teams’ Overseas Experience on Green Innovation in the Digital Era," IJERPH, MDPI, vol. 19(22), pages 1-20, November.
    2. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    3. Dante I. Leyva-de la Hiz & J. Alberto Aragon-Correa & Andrew G. Earle, 2022. "Innovating for Good in Opportunistic Contexts: The Case for Firms’ Environmental Divergence," Journal of Business Ethics, Springer, vol. 176(4), pages 705-721, April.
    4. Chaiyawit Muangmee & Zdzisława Dacko-Pikiewicz & Nusanee Meekaewkunchorn & Nuttapon Kassakorn & Bilal Khalid, 2021. "Green Entrepreneurial Orientation and Green Innovation in Small and Medium-Sized Enterprises (SMEs)," Social Sciences, MDPI, vol. 10(4), pages 1-15, April.
    5. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    6. Wu, Wenhan & Wu, Wenzhuo & Wu, Kouhua & Ding, Chen, 2022. "The nexus between green innovations and natural resources commodity prices in China," Resources Policy, Elsevier, vol. 78(C).
    7. Morteza Akbari & Hamid Padash & Zahra Shahabaldini Parizi & Haniye Rezaei & Elmira Shahriari & Ala Khosravani, 2022. "A bibliometric review of green innovation research: identifying knowledge domain and network," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 3993-4023, December.
    8. Di Luan & Hongjun Cao & Tongkun Qu, 2023. "How Does Corporate Green Innovation Strategy Translate into Green Innovation Performance Based on Chain Mediation?," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
    9. Jakeline Serrano‐García & Andrea Bikfalvi & Josep Llach & Juan José Arbeláez‐Toro, 2022. "Capabilities and organisational dimensions conducive to green product innovation: Evidence from Croatian and Spanish manufacturing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2767-2785, November.
    10. Lin, Woon Leong & Ho, Jo Ann & Sambasivan, Murali & Yip, Nick & Mohamed, Azali Bin, 2021. "Influence of green innovation strategy on brand value: The role of marketing capability and R&D intensity," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    11. Chen, Jiawen & Liu, Linlin, 2020. "Customer participation, and green product innovation in SMEs: The mediating role of opportunity recognition and exploitation," Journal of Business Research, Elsevier, vol. 119(C), pages 151-162.
    12. Jiawen Chen & Linlin Liu, 2018. "Profiting from Green Innovation: The Moderating Effect of Competitive Strategy," Sustainability, MDPI, vol. 11(1), pages 1-23, December.
    13. Liangdong Lu & Mengyao Wang & Jia Xu, 2023. "How to Keep Investors’ Confidence after Being Labeled as Polluting Firms: The Role of External Political Ties and Internal Green Innovation Capabilities," Sustainability, MDPI, vol. 15(17), pages 1-19, September.
    14. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    15. McKenzie, David & Gibson, John & Stillman, Steven, 2006. "How important is selection ? Experimental versus non-experimental measures of the income gains from migration," Policy Research Working Paper Series 3906, The World Bank.
    16. Ying, Ying & Wang, Shixiang & Liu, Yang, 2022. "Make bricks without straw: Eco-innovation for resource-constrained firms in emerging markets," Technovation, Elsevier, vol. 114(C).
    17. Aastvedt, Tonje Marthinsen & Behmiri, Niaz Bashiri & Lu, Li, 2021. "Does green innovation damage financial performance of oil and gas companies?," Resources Policy, Elsevier, vol. 73(C).
    18. Flores, Carlos A. & Mitnik, Oscar A., 2009. "Evaluating Nonexperimental Estimators for Multiple Treatments: Evidence from Experimental Data," IZA Discussion Papers 4451, Institute of Labor Economics (IZA).
    19. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    20. Chen, Feng & Wu, Bin & Lou, Wenqian, 2021. "An evolutionary analysis on the effect of government policies on green R & D of photovoltaic industry diffusion in complex network," Energy Policy, Elsevier, vol. 152(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:12:y:2023:i:8:p:1639-:d:1221596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.