Assessing the effectiveness of innovative city pilots in improving urban carbon emission performance: A spatial difference-in-difference approach

Abstract

Existing studies have focused on the impact of innovation on carbon emission performance but ignore the importance of government support for innovation. To overcome this challenge, this paper adopts a spatial difference-in-difference (DID) model to assess the impact of government support for innovation on urban carbon emission performance based on a quasi-natural experiment of innovative city pilots (ICP) in China. Using the high-resolution carbon emission data of 1 km × 1 km for 238 cities from 2008 to 2019 in China, this paper employees an extended stochastic frontier analysis (SFA) model to measure urban carbon emission performance. Our findings indicate that ICP implementation leads to a 1.3% improvement in local carbon emission performance. Meanwhile, there is a significant spatial spillover effect of ICP implementation, with a 3.3% improvement in the carbon performance of the surrounding areas. The results of the mechanism analysis suggest that government innovation support affects carbon emission performance by promoting total factor productivity improvement, green innovation, and industrial upgrading. Further analysis shows that ICP has the strongest impact on carbon performance in the eastern region, and the impact is stronger for large cities and resource-dependent cities. Finally, the paper carries out a series of robustness tests to ensure the reliability of the analytical results, including parallel trend tests, placebo tests and re-estimation of different methods. Based on the findings, this paper proposes feasible policy recommendations in terms of continuous promotion of government innovation support, regional cooperation and differentiated innovation support formulation.