Study on city's energy transition: Evidence from the establishment of the new energy demonstration cities in China

Abstract

Actively promoting city's energy transition is crucial for achieving SDG-7 and SDG-13. Taking the establishment of New Energy Demonstration Cities (NEDC) in China as a quasi-natural experiment, this paper employs difference-in-difference model to empirically test the impact of the NEDC policy on city's energy transition and its underlying mechanisms. The results demonstrate that the NEDC policy has significantly accelerated regional energy transition. Through an analysis of the internal motivation for energy transition, we find that this positive effect is predominantly driven by green demand-side rather than supply-side. Further examination of the external impetus for energy transition reveals that government governance, technology innovation, and the associated human and financial supports are key factors in propelling local energy transition. Our findings offer insights into the pathways of city's energy transition for China and other countries.