Estimating heterogeneous effects of China’s low-carbon pilot city policy on urban employment

Abstract

This paper explores the heterogeneous treatment effects of China’s low-carbon pilot (LCP) city policy on urban employment. We apply time-varying difference-in-differences (DID) method justifying the mechanisms. The research demonstrates that the strategy has a significant positive impact on employment in the pilot cities and improves employment by raising the level of output and creativity. Additionally, the employment levels in the three industries increase as a result of the LCP. Our findings enrich existing research at the economic and environmental domains, particularly the influence on employment. The authorities in China and other nations could summarize and promote the experience of LCP and improve the assessment mechanism.