Can low-carbon pilot policy improve atmospheric environmental performance in China? A quasi-natural experiment approach

Abstract

Whether low-carbon pilot (LCP) policies in China can improve atmospheric environmental performance (AEP) is essential to reduce greenhouse gas emissions and achieve sustainable development nationwide. However, the LCP policy's impact on the AEP and its underlying mechanism needs further exploration. Based on Chinese provincial (municipal) panel data from 2006 to 2016, the slack-based measure with undesirable output was used to assess the AEP denoted the atmospheric environmental efficiency. On the basis of this efficiency, the difference-in-difference (DID) method was applied to evaluate the impacts of the LCP policy on AEP. The results show that the LCP policy significantly promotes AEP. Further analysis indicates that the favorable institutional environment, greater financial autonomy, and advanced industrial structure can positively moderate LCP policy on AEP. Furthermore, the mechanism analysis indicates that the policy effects are mainly encouraged by R&D innovation. This study provides a fresh way of thinking about the in-depth assessment of AEP and empirical evidence for the further development of the policy.