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The impact of new energy pilot city policies on urban green innovation: Evidence from China’s city level

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  • Ma, Dan
  • Zhu, Yanjin
  • Lee, Chien-Chiang

Abstract

This study examines the impact of China's New Energy Pilot Cities Policy (NEPCP) on urban green innovation (GI) using a sample of 273 cities and the Neural Network Difference-in-Differences (NN-DID) method. The findings reveal that NEPCP significantly enhances urban GI, primarily through optimizing green energy behavior and improving carbon emission efficiency. While green innovation itself exhibits spatial spillover effects, NEPCP does not significantly influence GI in neighboring cities, highlighting the policy's targeted implementation. Heterogeneity analysis indicates that the policy's effects are more pronounced in eastern and central regions compared to western regions, and cities with higher levels of economic equality benefit more from the policy. This study not only enriches theoretical research on the relationship between new energy policies and GI but also provides empirical evidence and practical insights for regional green economic development and sustainable policy design.

Suggested Citation

  • Ma, Dan & Zhu, Yanjin & Lee, Chien-Chiang, 2025. "The impact of new energy pilot city policies on urban green innovation: Evidence from China’s city level," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 585-604.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:585-604
    DOI: 10.1016/j.eap.2025.06.029
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    1. Cong, Yingnan & Hou, Yufei & Ji, Yuan & Cai, Xiaojing, 2026. "Does innovation-driven policy optimize urban energy consumption? Evidence from China’s innovation-driven city pilot policies," The North American Journal of Economics and Finance, Elsevier, vol. 81(C).

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    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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