Does the low-carbon pilot policy improve urban economic resilience? Evidence from China

Abstract

Identifying the relationship between carbon neutrality initiatives and its economic impact is crucial in evaluating the cost of low-carbon transition for policy makers. In this paper, a theoretical model is built to discuss the effects of the low-carbon pilot policy in China on urban economic resilience and an empirical test is conducted to examine the relationship using the Heckman two stage model and a panel data of 277 cities from 2004 to 2020. The results show that low-carbon pilot policy significantly enhanced urban economic resilience and the stimulating effect is mainly achieved by motivating technology innovations. In addition, further analysis indicates that low-carbon pilot policy has a more pronounced effect on improving urban economic resilience of cities in the central and western regions than eastern regions. The effect is also more prominent in non-first-tier cities than first-tier cities. The results are robust to placebo test, the Propensity Score Matching Difference-in-Difference test and the test for alternative measure of urban economic resilience. The findings show that the low-carbon pilot policy is consistent with the goal of improving urban economic resilience and technology innovation is the essential pillar of sustainable development.

Can urban e-commerce transformation improve economic resilience? a quasi-natural experiment from China

“…A higher index value indicates lower diversity in the region's industries, signaling weaker resistance to risk; therefore, the index is negatively attributed. The methodology for calculating the advanced industrial structure is drawn from Liu [43]. Table 6 summarizes the outcomes of the aforementioned treatments and affirms that the construction of NEDC on the economic resilience of cities is positive and robust.…”

“…First, we exclude the influence of the low-carbon transformation strategy. Liu found that China's low-carbon city pilot policy (LCCP) effectively shields against external shocks and sustains economic stability [43]. Second, we remove the shock of information infrastructure construction on economic resilience.…”

“…One is the single core indicator approach, which gauges the persistence, resistance to contraction, and sensitivity of economic growth using metrics such as GDP growth or unemployment rates [42]. The other is the indicator system method, which systematically captures the evolving characteristics of economic resilience using various variables highly correlated with economic fluctuation [43]. Second, studies have shown that factors such as financial development [44], population agglomeration [45], regional innovation [46], industrial structure [47], government intervention [48], and digital transformation [49] can affect urban economic resilience.…”

Exploring the Influence of the Digital Economy on Energy, Economic, and Environmental Resilience: A Multinational Study across Varied Carbon Emission Groups

“…One possible reason may be that the environmental costs associated with carbon emissions, such as pollution and climate change, pose risks to economic stability and sustainability. Studies have shown that the negative externalities of carbon emissions can lead to increased resource scarcity, regulatory burdens, and potential disruptions to industries and supply chains [81][82][83]. Furthermore, moving toward a low-carbon economy and the adoption of sustainable practices have been identified as crucial factors for enhancing economic resilience in the face of environmental challenges.…”