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Administrative division adjustment and enterprise carbon emissions: Evidence from City-County Merger in China

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  • Li, Qihang
  • Zhang, Quanfei

Abstract

To improve urbanization and promote economic development, China has implemented the City-County Merger Policy (CCMP). This study uses a staggered Difference-in-Differences (DID) method to explore how the CCMP affects corporate carbon intensity. We focus on two main components: economic integration and political integration. Our findings show that the CCMP increases the overall carbon emission intensity of companies. This increase occurs due to the “evacuation effect” of economic integration. At the same time, the policy reduces emissions through the “governance effect” of political integration. This research helps us understand how changes in administrative structures can influence environmental outcomes. It also provides valuable insights for policymakers who want to balance urbanization with sustainable development.

Suggested Citation

  • Li, Qihang & Zhang, Quanfei, 2025. "Administrative division adjustment and enterprise carbon emissions: Evidence from City-County Merger in China," Energy Economics, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:eneeco:v:149:y:2025:i:c:s0140988325006346
    DOI: 10.1016/j.eneco.2025.108807
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