Impact of Low-Carbon City Pilot Policies on Regional Green Total Factor Productivity: A Study

Abstract

Based on data from 246 prefecture-level cities in China spanning the years 2006 to 2019, this paper employs a multi-temporal double-difference model to empirically examine the effects of low-carbon pilot policies implemented since 2010 on green total factor productivity. Furthermore, the paper conducts a mechanism analysis and heterogeneity analysis to explore the policys impact mechanisms and effects on different regions. The study reveals that low-carbon pilot policies have enhanced Chinas green total factor productivity. Results from the mechanism analysis indicate that these policies increase green total factor productivity by promoting the agglomeration of productive service industries and the innovation of green technologies, with the mechanism test for manufacturing industry agglomeration showing non-significant effects. Heterogeneity analysis results suggest that the impact of low-carbon pilot policies on the improvement of green total factor productivity is significant in Chinas eastern and western regions as well as in non-resource-based cities.