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Can “Made in China 2025” policy promote urban green and low-carbon transformation? Evidence from China

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  • Gao, Ming
  • Gao, Yuxin

Abstract

Promoting green and low-carbon transformation (GLCT) is crucial for mitigating global warming and achieving China's national “dual carbon” strategic targets. Made in China 2025 (MIC 2025) is an essential industrial policy, but there is still limited evidence on whether it effectively promotes GLCT. Using panel data from 282 Chinese cities spanning 2006 to 2022, this study employs a difference-in-differences approach to examine the impact of the MIC 2025 policy on urban GLCT. The results indicate that the MIC 2025 policy significantly enhances urban GLCT, and these findings remain robust across multiple robustness checks. Heterogeneity analyses reveal that the policy exerts stronger effects in eastern and central regions, in large and medium-sized cities, and in cities with advanced digital finance development levels. Mechanism analysis suggests that the policy promotes GLCT by fostering technological innovation, improving energy efficiency, and optimizing resource allocation. Furthermore, the policy exhibits linkage effects with Broadband China, green fiscal policy, innovative city, smart city, and information consumption city programs, collectively contributing to GLCT. These findings offer valuable policy insights for advancing urban GLCT and promoting sustainable development through targeted industrial policies.

Suggested Citation

  • Gao, Ming & Gao, Yuxin, 2026. "Can “Made in China 2025” policy promote urban green and low-carbon transformation? Evidence from China," Energy, Elsevier, vol. 351(C).
    • Handle: RePEc:eee:energy:v:351:y:2026:i:c:s0360544226008960
    DOI: 10.1016/j.energy.2026.140793
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