IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v27y2025i6d10.1007_s10668-023-04421-4.html
   My bibliography  Save this article

Assessment on the synergistic effect of pollution and carbon reductions in low-carbon city pilot policy: based on effectiveness and efficiency perspectives

Author

Listed:
  • Xianxian Fan

    (Hunan University)

  • Yunlei Zhou

    (Anhui University of Finance and Economics)

  • Qiang Xie

    (Anhui Xinhua University)

Abstract

This study focuses on the impacts of low-carbon city pilot policy (LCCP) on pollution and carbon emissions and synergistic emission reduction efficiency, and then explores whether it can realize the synergistic effect of pollution and carbon reduction. Based on the panel data of 282 cities in China from 2006 to 2019, this paper treats LCCP as a quasi-natural experiment and tests its effect using difference-in-differences model. The results show that LCCP reduces pollution and carbon emissions and improves synergistic emission reduction efficiency, realizing synergistic effect of pollution and carbon reduction. The policy effects are mainly realized through strengthening technological innovation, tertiary industry employment and human capital. Heterogeneity analysis shows that the synergistic effect of pollution and carbon reduction of LCCP only exists in large cities and non-resource cities. Furthermore, LCCP promotes economic growth, so that it realizes the synergetic effect of pollution and carbon reduction without sacrificing GDP growth.

Suggested Citation

  • Xianxian Fan & Yunlei Zhou & Qiang Xie, 2025. "Assessment on the synergistic effect of pollution and carbon reductions in low-carbon city pilot policy: based on effectiveness and efficiency perspectives," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(6), pages 12945-12969, June.
  • Handle: RePEc:spr:endesu:v:27:y:2025:i:6:d:10.1007_s10668-023-04421-4
    DOI: 10.1007/s10668-023-04421-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-04421-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10668-023-04421-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Huang, Jingchang & Zhao, Jing & Cao, June, 2021. "Environmental regulation and corporate R&D investment—evidence from a quasi-natural experiment," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 154-174.
    2. Cai, Xiqian & Lu, Yi & Wu, Mingqin & Yu, Linhui, 2016. "Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China," Journal of Development Economics, Elsevier, vol. 123(C), pages 73-85.
    3. Rubashkina, Yana & Galeotti, Marzio & Verdolini, Elena, 2015. "Environmental regulation and competitiveness: Empirical evidence on the Porter Hypothesis from European manufacturing sectors," Energy Policy, Elsevier, vol. 83(C), pages 288-300.
    4. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    5. Eric V. Edmonds & Nina Pavcnik & Petia Topalova, 2010. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 42-75, October.
    6. Janet Currie & Matthew Neidell, 2005. "Air Pollution and Infant Health: What Can We Learn from California's Recent Experience?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 1003-1030.
    7. Gehrsitz, Markus, 2017. "The effect of low emission zones on air pollution and infant health," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 121-144.
    8. Borghesi, Simone & Cainelli, Giulio & Mazzanti, Massimiliano, 2015. "Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry," Research Policy, Elsevier, vol. 44(3), pages 669-683.
    9. Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
    10. Xueping Wu & Ming Gao & Shihong Guo & Rashid Maqbool, 2019. "Environmental and economic effects of sulfur dioxide emissions trading pilot scheme in China: A quasi-experiment," Energy & Environment, , vol. 30(7), pages 1255-1274, November.
    11. Sachs, Jeffrey D. & Warner, Andrew M., 1999. "The big push, natural resource booms and growth," Journal of Development Economics, Elsevier, vol. 59(1), pages 43-76, June.
    12. Hendrik Wolff, 2014. "Keep Your Clunker in the Suburb: Low‐emission Zones and Adoption of Green Vehicles," Economic Journal, Royal Economic Society, vol. 124(578), pages 481-512, August.
    13. Joshua Graff Zivin & Matthew Neidell, 2012. "The Impact of Pollution on Worker Productivity," American Economic Review, American Economic Association, vol. 102(7), pages 3652-3673, December.
    14. Hering, Laura & Poncet, Sandra, 2014. "Environmental policy and exports: Evidence from Chinese cities," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 296-318.
    15. Yang, Fei & Shi, Beibei & Xu, Ming & Feng, Chen, 2019. "Can reducing carbon emissions improve economic performance: Evidence from China," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-39.
    16. Michael Greenstone & John A. List & Chad Syverson, 2011. "The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing," Working Papers 11-03, Center for Economic Studies, U.S. Census Bureau.
    17. Dong, Zhaoyingzi & Xia, Chuyu & Fang, Kai & Zhang, Weiwen, 2022. "Effect of the carbon emissions trading policy on the co-benefits of carbon emissions reduction and air pollution control," Energy Policy, Elsevier, vol. 165(C).
    18. Zhu, Junpeng & Wu, Shaohui & Xu, Junbing, 2023. "Synergy between pollution control and carbon reduction: China's evidence," Energy Economics, Elsevier, vol. 119(C).
    19. Cao, Jing & Ho, Mun S. & Ma, Rong & Teng, Fei, 2021. "When carbon emission trading meets a regulated industry: Evidence from the electricity sector of China," Journal of Public Economics, Elsevier, vol. 200(C).
    20. Sahar Milani, 2017. "The Impact of Environmental Policy Stringency on Industrial R&D Conditional on Pollution Intensity and Relocation Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 595-620, November.
    21. Wang, Ailun & Hu, Shuo & Lin, Boqiang, 2021. "Can environmental regulation solve pollution problems? Theoretical model and empirical research based on the skill premium," Energy Economics, Elsevier, vol. 94(C).
    22. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    23. Wolff, Hendrik, 2014. "Keep Your Clunker in the Suburb: Low Emission Zones and Adoption of Green Vehicles," IZA Discussion Papers 8180, Institute of Labor Economics (IZA).
    24. Chen, Yvonne Jie & Li, Pei & Lu, Yi, 2018. "Career concerns and multitasking local bureaucrats: Evidence of a target-based performance evaluation system in China," Journal of Development Economics, Elsevier, vol. 133(C), pages 84-101.
    25. Hoffmann, Volker H., 2007. "EU ETS and Investment Decisions:: The Case of the German Electricity Industry," European Management Journal, Elsevier, vol. 25(6), pages 464-474, December.
    26. Fisher-Vanden, Karen & Jefferson, Gary H. & Jingkui, Ma & Jianyi, Xu, 2006. "Technology development and energy productivity in China," Energy Economics, Elsevier, vol. 28(5-6), pages 690-705, November.
    27. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    28. Yu, Yantuan & Zhang, Ning, 2021. "Low-carbon city pilot and carbon emission efficiency: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 96(C).
    29. Tian, Yanping & Song, Wenjing & Liu, Min, 2021. "Assessment of how environmental policy affects urban innovation: Evidence from China’s low-carbon pilot cities program," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 41-56.
    30. Gray, Wayne B, 1987. "The Cost of Regulation: OSHA, EPA and the Productivity Slowdown," American Economic Review, American Economic Association, vol. 77(5), pages 998-1006, December.
    31. Martínez-Zarzoso, Inmaculada & Bengochea-Morancho, Aurelia & Morales-Lage, Rafael, 2019. "Does environmental policy stringency foster innovation and productivity in OECD countries?," Energy Policy, Elsevier, vol. 134(C).
    32. Pan, An & Zhang, Wenna & Shi, Xunpeng & Dai, Ling, 2022. "Climate policy and low-carbon innovation: Evidence from low-carbon city pilots in China," Energy Economics, Elsevier, vol. 112(C).
    33. Hamamoto, Mitsutsugu, 2006. "Environmental regulation and the productivity of Japanese manufacturing industries," Resource and Energy Economics, Elsevier, vol. 28(4), pages 299-312, November.
    34. Jianhuan Huang & Yantuan Yu & Chunbo Ma, 2018. "Energy Efficiency Convergence in China: Catch-Up, Lock-In and Regulatory Uniformity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 107-130, May.
    35. Cui, Lian-Biao & Fan, Ying & Zhu, Lei & Bi, Qing-Hua, 2014. "How will the emissions trading scheme save cost for achieving China’s 2020 carbon intensity reduction target?," Applied Energy, Elsevier, vol. 136(C), pages 1043-1052.
    36. Li, Pei & Lu, Yi & Wang, Jin, 2016. "Does flattening government improve economic performance? Evidence from China," Journal of Development Economics, Elsevier, vol. 123(C), pages 18-37.
    37. Barbera, Anthony J. & McConnell, Virginia D., 1990. "The impact of environmental regulations on industry productivity: Direct and indirect effects," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 50-65, January.
    38. Ding Li & Yan Zhang & Shuang Ma, 2017. "Would Smog Lead to Outflow of Labor Force? Empirical Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(5), pages 1122-1134, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gao, Xing & Lai, Xinjie & Tang, Xuan & Li, Yue, 2024. "Does environmental regulation affect corporate environmental awareness? A quasi-natural experiment based on low-carbon city pilot policy," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1164-1184.
    2. Ren, Yi-Shuai & Liu, Pei-Zhi & Klein, Tony & Sheenan, Lisa, 2024. "Does the low-carbon pilot cities policy make a difference to the carbon intensity reduction?," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 227-239.
    3. Yanhong Feng & Shuanglian Chen & Pierre Failler, 2020. "Productivity Effect Evaluation on Market-Type Environmental Regulation: A Case Study of SO 2 Emission Trading Pilot in China," IJERPH, MDPI, vol. 17(21), pages 1-27, October.
    4. Chen, Shiyi & Jiang, Lingduo & Liu, Wanlin & Song, Hong, 2022. "Fireworks regulation, air pollution, and public health: Evidence from China," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    5. Cenjie Liu & Chunbo Ma & Rui Xie, 2020. "Structural, Innovation and Efficiency Effects of Environmental Regulation: Evidence from China’s Carbon Emissions Trading Pilot," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 741-768, April.
    6. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    7. Wang, Chang’an & Liu, Xiaoqian & Li, Han & Yang, Cunyi, 2023. "Analyzing the impact of low-carbon city pilot policy on enterprises' labor demand: Evidence from China," Energy Economics, Elsevier, vol. 124(C).
    8. Cenjie Liu & Zhongbao Zhou & Qing Liu & Rui Xie & Ximei Zeng, 2020. "Can a low-carbon development path achieve win-win development: evidence from China’s low-carbon pilot policy," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(7), pages 1199-1219, October.
    9. Dongmin Kong & Mengxu Xiong & Ni Qin, 2023. "Tax incentives and firm pollution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(3), pages 784-813, June.
    10. Mian Yang & Yining Yuan & Fuxia Yang & Dalia Patino-Echeverri, 2021. "Effects of environmental regulation on firm entry and exit and China’s industrial productivity: a new perspective on the Porter Hypothesis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 915-944, October.
    11. Ren, Shenggang & Yang, Xuanyu & Hu, Yucai & Chevallier, Julien, 2022. "Emission trading, induced innovation and firm performance," Energy Economics, Elsevier, vol. 112(C).
    12. Qingyang Wu & Zhen Sun & Linhan Jiang & Lei Jiang, 2024. "“Bottom-up” abatement on climate from the “top-down” design: lessons learned from China’s low-carbon city pilot policy," Empirical Economics, Springer, vol. 66(3), pages 1223-1257, March.
    13. Zhou, Peng & Song, Frank M. & Huang, Xiaoqi, 2023. "Environmental regulations and firms' green innovations: Transforming pressure into incentives," International Review of Financial Analysis, Elsevier, vol. 86(C).
    14. Yuping Deng & Yanrui Wu & Helian Xu, 2019. "Environmental Regulation and Export Product Quality: Evidence from Chinese Firms," Economics Discussion / Working Papers 19-14, The University of Western Australia, Department of Economics.
    15. Hongfeng Zhang & Lu Huang & Yan Zhu & Hongyun Si & Xu He, 2021. "Does Low-Carbon City Construction Improve Total Factor Productivity? Evidence from a Quasi-Natural Experiment in China," IJERPH, MDPI, vol. 18(22), pages 1-21, November.
    16. Lan, Jing & Wang, Pei, 2025. "An efficiency perspective on low carbon pilot city policy and carbon emission performance of listed enterprises: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 145(C).
    17. Liao, Jiaqi & Zhang, Ning, 2024. "Environmental regulation and manufacturing employment: Evidence from China's Eleventh Five-Year Plan," China Economic Review, Elsevier, vol. 87(C).
    18. Qin, Ming & Fan, Lin-feng & Li, Jing & Li, Yi-fei, 2021. "The income distribution effects of environmental regulation in China: The case of binding SO2 reduction targets," Journal of Asian Economics, Elsevier, vol. 73(C).
    19. Jianpei Li & Jierui Huang & Bowen Li, 2024. "Do command‐and‐control environmental regulations realize the win‐win of “pollution reduction” and “efficiency improvement” for enterprises? Evidence from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3271-3292, August.
    20. Wang, Ruqi & Xu, Pei & Gao, Honggui, 2024. "Rectifying local governments’ strategic environmental enforcement: Can refined air pollution monitoring enhance local air quality in China?," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 978-995.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:27:y:2025:i:6:d:10.1007_s10668-023-04421-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.