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The impact of low-carbon city pilot policy on employment in China

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  • Hou, Li
  • Xing, Baodan

Abstract

As a pivotal policy measure to facilitate China’s green transformation, low-carbon city pilot policies (LCCPPs) have garnered increasing academic attention for its socioeconomic impacts. Utilizing panel data from 281 prefecture-level and higher cities in China from 2005 to 2019, this study employs a difference-in-differences (DID) model to evaluate the employment effects of the LCCPPs. Empirical findings reveal that regions implementing the LCCPPs experienced a significant 6.88 % increase in employment levels. This conclusion remains robust across a series of robustness tests. Mechanism analysis indicates that the policy promotes employment through enhancing technological innovation, while the advanced industrial structure positively moderates this effect. Notably, higher levels of industrial advancement yield greater employment benefits. Furthermore, a synergistic effect between industrial structure upgrading and technological innovation amplifies employment gains. Heterogeneity analysis reveals that the policy’s employment effects are more pronounced in central region cities and non-resource cities. These findings provide empirical evidence and policy insights for advancing the LCCPPs and the future development of a low-carbon economy.

Suggested Citation

  • Hou, Li & Xing, Baodan, 2025. "The impact of low-carbon city pilot policy on employment in China," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 503-516.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:503-516
    DOI: 10.1016/j.eap.2025.06.023
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