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Assessing the low-carbon city pilot policy on carbon emission from consumption and production in China: how underlying mechanism and spatial spillover effect?

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Abstract

The low-carbon city pilot (LCCP) policy is an important initiative for China to fulfill its international commitment to carbon emission reduction and achieve low-carbon transformation. In this context, this study investigated whether the LCCP policy of China has achieved carbon emission reduction from the production and consumption perspectives and how its underlying mechanism and spatial spillover effect. Using the panel dataset of 285 Chinese prefecture-level cities from 2003 to 2019, this study applied the staggered DID model to examine the effects and its underlying mechanism of the LCCP policy on carbon intensity (CI) and carbon emission per capita (CP). We also conducted heterogeneity and spatial spillover effect analyses using the textual quantification method and spatial DID. Our results show that the LCCP policy effectively reduced CI and CP, but these effects did not appear until the third year of implementation. The above conclusions passed a series of robustness and endogeneity tests. Reducing industrial emissions, improving technological innovation, and optimizing the efficiency of energy usage were three important mechanisms to reduce CI and CP, validating the effectiveness of the LCCP policy. Command-mandatory and voluntary LCCP policy tools achieved better results, and the LCCP policy exerted a significant emission reduction effect on second-tier pilot cities as compared to others. The carbon emission abatement of the LCCP policy has also demonstrated a spatial spillover impact on neighboring cities. This study focused on analyzing the mechanism paths and spatial spillover effects of the LCCP policy impact and provided an important decision-making reference in promoting the LCCP policy for not only China but also other developing countries. Specifically, low-carbon pilot experiences and typical cases should be refined, ways for accelerating the greening and cleaning of energy usage must be explored, and regional joint control and collaborative governance should be established to achieve China’s low-carbon transformation.

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Fig. 1

Source: Authors drew the map based on the documents related to the LCCP policy issued by China’s NDRC. The vector map is from the National Geomatics Center of China

Fig. 2

Source: The figure was drawn by authors based on the results of running stata17

Fig. 3

Source: The figure was plotted by authors based on the results of running stata17

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Abbreviations

LCCP:

Low-carbon city pilot

CI:

Carbon intensity

CP:

Carbon emission per capita

CO2 :

Carbon dioxide

DID:

Difference-in-difference

PSM-DID:

Propensity score matching-DID

2SLS:

Two-stage least squares

SDID:

Spatial difference-in-difference

SUTVA:

Stable unit treatment value assumption

NDRC:

National Development and Reform Commission

CNY:

Chinese Yuan (currency unit)

treat :

The cross-term of the LCCP policy variable and time dummy variable

lnpgdp :

Economic growth

lnpd :

Population density

secindp :

Industrial structure

fdip :

Foreign direct investment

eximp :

Openness

scieddp :

Science and education

lnwrcolstu :

Human capital

GDP:

Gross domestic product

VC:

Air circulation coefficient

RDLS:

Relief degree of land surface

lnindSO 2 :

Industrial sulfur dioxide emission

lnindfumes :

Industrial fumes emission

wrlcpat :

Low-carbon technology innovation

scireseap :

Scientific technology innovation

renewstr :

Clean energy structure

energyint :

Energy intensity

nenervehicle :

The new energy vehicle subsidy pilot policy

atomemi :

The atmospheric emission limit pilot policy

cemitra :

The carbon emission trading right pilot policy

control :

Command-mandatory LCCP policy tools

market :

Market-economic LCCP policy tools

voluntary :

Voluntary LCCP policy tools

i :

ith Prefecture-level city unit

t :

tth Time

D i, t0 + k :

A series of dummy variables associated with the years of implementation of the LCCP policy

k :

The kth year of the start of LCCP policy

References

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Funding

This research was funded by the National Planning Office of Philosophy and Social Science Foundation of China (No. 16BJL032).

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Authors and Affiliations

Authors

Contributions

(1) Huimin Ren: conceptualization, methodology, writing-original draft, and editing. (2) Guofeng Gu: visualization, writing-review, and investigation. (3) Honghao Zhou: resources, writing-review and editing, and supervision. Correspondence to Guofeng Gu.

Corresponding author

Correspondence to Guofeng Gu.

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Competing interests

The authors declare no competing interests.

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Responsible Editor: Arshian Sharif

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Appendix

Appendix

Table

Table 10 Estimation results of the PSM-DID model (CI)

10

Table

Table 11 Estimation results of the PSM-DID model (CP)

11

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Ren, H., Gu, G. & Zhou, H. Assessing the low-carbon city pilot policy on carbon emission from consumption and production in China: how underlying mechanism and spatial spillover effect?. Environ Sci Pollut Res 29, 71958–71977 (2022). https://doi.org/10.1007/s11356-022-21005-3

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  • DOI: https://doi.org/10.1007/s11356-022-21005-3

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