The local-neighborhood effects of low-carbon city pilots program on PM2.5 in China: A spatial difference-in-differences analysis

Abstract

Using the balanced panel of 260 cities in China from 2005 to 2018, this study explores the local-neighborhood effects of the low-carbon city pilots (LCCPs) program on PM2.5 concentration by utilizing the spatial difference-in-differences (SDID) method. The results show that the LCCPs program can not only reduce the local PM2.5 concentration but also effectively alleviate the smog pollution in neighboring cities. The reduction effect of LCCPs on PM2.5 in local cities is more significant in central and western areas, second-tier and above cities and resource-based cities. Nevertheless, the spillover effect on neighboring cities is more significant in central and western areas, third-tier and below and non-resource-based cities. In addition, the impact of policy is mainly through green innovation, while the intermediary role of industrial structure upgrading is not significant. These findings can provide useful policy inspiration for scientifically implementing air pollution prevention and control actions and winning the battle to defend the blue sky.