Can low-carbon transportation construction improve urban green total factor productivity? A quasi-natural experiment based on 282 prefecture-level cities in China.

Abstract

Total factor productivity in the green economy is a major step forward in fostering robust growth in the economy. Urban green total factor productivity (GTFP) may be increased and carbon emissions decreased through the low-carbon transformation of the transportation sector. To analyze how the pilot policy of low-carbon transportation system construction affects urban GTFP, this study builds a DID model and a spatial Durbin model using panel data from 282 Chinese cities between 2006 and 2021. The findings show that low-carbon transportation systems boost urban GTFP. In addition, the mechanism test shows that low-carbon transportation development increases urban GTFP by optimizing urban industrial structure, expediting economic agglomeration, and encouraging technological innovation. Lastly, the geographical correlation test shows that GTFP is geographically associated and that spatial spillover reduces the impact of low-carbon transportation growth on GTFP. The findings affirm the need to vigorously promote low-carbon transportation systems to aid in the achievement of the carbon neutrality target.