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Can the New Energy Demonstration City Policy Promote Green and Low-Carbon Development? Evidence from China

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  • Bo Chen

    (School of Economics, Jinan University, Guangzhou 510632, China)

  • Feng Jin

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Guangchen Li

    (School of Economics, Beijing Wuzi University, Beijing 101149, China)

  • Yurong Zhao

    (School of Applied Science and Technology, Beijing Union University, Beijing 100012, China)

Abstract

Developing new energy is critical to China’s green and low-carbon development. Therefore, in 2014, the Chinese government promulgated a vital innovation policy, namely, the New Energy Demonstration City Policy (NEDCP), which is expected to reduce energy consumption and carbon emissions in Chinese cities. Is the NEDCP facilitating green and low-carbon development in China, and if so, how? Based on unbalanced panel data from 2003 to 2017 at the city level in China, in this study we evaluate the impact of the NEDCP on green and low-carbon development using the staggered difference-in-differences (DID) method. We find that the NEDCP can significantly contribute to green and low-carbon development in China. After various robustness tests, our results are still valid. According to the heterogeneity analysis, non-resource and non-old industrial-base cities have a greater positive impact from this policy. The mechanism analysis denotes that the positive policy effect works by upgrading the industrial structure and stimulating urban innovation. The substantial empirical evidence presented in this paper supports the continued promotion and implementation of new-energy demonstration cities.

Suggested Citation

  • Bo Chen & Feng Jin & Guangchen Li & Yurong Zhao, 2023. "Can the New Energy Demonstration City Policy Promote Green and Low-Carbon Development? Evidence from China," Sustainability, MDPI, vol. 15(11), pages 1-16, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8727-:d:1158231
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    2. Wang, Zongrun & Cao, Xuxin & Ren, Xiaohang & Gozgor, Giray, 2024. "Digital finance and the energy transition: Evidence from Chinese prefecture-level cities," Global Finance Journal, Elsevier, vol. 61(C).
    3. Chen, Bo & Xu, Huange & Li, Guangchen, 2023. "Entry deregulation and labor share: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PD).

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