A Study on the Impact of Low Carbon Transition on Green Performance of Industrial Enterprises Quasi-natural experiments based on "low carbon city pilot"

Abstract

The current environmental situation in China is severe, low-carbon transformation is imminent, and the government implements the low-carbon city pilot policy to promote greening of economic and social development. To further improve this environmental policy, a multi-period double difference model is used to investigate in depth the impact of the low-carbon city pilot policy on the green performance of enterprises based on panel data of industrial listed enterprises in China from 2010-2021, using the implementation of the low-carbon city pilot policy as a quasi-natural experiment. It is found that the low-carbon city pilot policy significantly reduces the green performance of industrial firms within the pilot city, and the propensity score matching-double difference (PSM-DID) model estimation results are consistent with the findings of the multi-period DID model, and the above results are robust. In view of this, the government should control the intensity and manner of policy implementation, and implement the low-carbon city pilot policy in a gradual and localized manner.