The effect of low-carbon transportation pilot policy on carbon performance: evidence from China

Abstract

In 2011, aiming to achieve sustainable development in the transportation sector, the Chinese government started a pilot policy of low-carbon transportation system (LCTS). Based on the panel data for 280 prefecture-level cities in China from 2006 to 2017, we first measure carbon efficiency by using the SBM-DEA model, and identify the direct and spatial spillover effects of LCTS on carbon efficiency and carbon intensity by adopting a spatial difference-in-differences approach (SDID). The results indicate that LCTS construction not only enhances local carbon performance but also has a significant spatial spillover effect in neighboring cities. The results are still valid after a series of robustness tests. The mechanism analysis reveals that LCTS can elevate carbon performance by improving energy efficiency, green innovation, and developing public transit. The direct and indirect effects of LCTS on carbon performance show more pronounced effects in megalopolis and eastern region. This paper provides reliable empirical evidence for the effect of LCTS on carbon performance, which is conducive to deepening the understanding of carbon emissions and has a high reference value for the rational formulation of carbon reduction policies.