Can China's decentralized energy governance reduce carbon emissions? Evidence from new energy demonstration cities

Abstract

For energy conservation, emission reduction and sustainable development, China launched the New Energy Demonstration City Program (NEDC) to try a more decentralized energy governance structure. Based on the theoretical framework between NEDC and carbon emissions, this paper tests its policy impact and mechanism. The results show that NEDC can significantly reduce carbon emissions by about 15.34%. The policy effects of NEDC are characterized by time lag and increasing intensification. NEDC has a stronger effect on reducing carbon emissions in western cities and non-resource-based cities. NEDC can reduce carbon emissions through industrial structure effect, environmental decentralization and information technology effect. NEDC has a synergistic emission reduction effect, which can reduce about 20.39% of nitrogen oxides (NOx) and 18.70% of sulfur dioxide (SO2). NEDC has policy spillover effect, which can not only reduce the carbon emissions of pilot cities, but also reduce the carbon emissions of neighbouring cities. The space emission reduction effect of NEDC is better within 400 km. Finally, this paper puts forward policy recommendations to strengthen decentralized energy governance to reduce carbon emissions.