Chinese Prefecture-level Cities Research Articles

Does the emissions trading system promote regional green innovation? – Evidence from Chinese prefecture-level cities

ABSTRACT The previous economic development model based on scale expansion has caused serious environmental pollution and resource constraints. Therefore, the development of green innovation with clean production and environmental protection as the core is particularly important. The emissions trading system (ETS) has been introduced in the process of market-oriented environmental regulation, and its impact on green innovation is of great significance. This paper examines the impact of the ETS on regional green innovation and its mechanism of action using the PSM-DID method based on data from 154 prefecture-level cities in China. The study finds that the ETS has a positive effect on improving green innovation, and this effect gradually increases over time. The impact mechanism test shows that the ETS promotes green innovation by increasing regional innovation R&D investment, and the regional business environment plays a positive role in this process. Heterogeneity tests show that the effects of ETS are more pronounced in more polluted regions and in regions with stricter environmental regulations. This paper provides theoretical support for the implementation of ETS in China and some developing countries, and empirical evidence and policy implications for the green innovation effect of ETS.

Is There a Digital Rebound in the Process of Urban Green Development? New Empirical Evidence Using Ensemble Learning Methods

The convergence of digitization and greening is an unavoidable path of modern economic progress. Nonetheless, the digital economy does not consistently align with the principles of green development, potentially leading to a rebound effect in urban digitalization initiatives. To investigate the correlation between the digital rebound effect and urban green development, this study utilizes panel data from Chinese prefecture-level cities spanning from 2011 to 2019. By examining the dual impact of the digital economy on green development, the paper posits a theoretical hypothesis regarding the nonlinear marginal effect of the digital economy. This research demonstrates an inverted U-shaped correlation between the digital economy and urban green development via empirical analyses employing the random forest algorithm and partial dependency plots. It supports the existence of a moderate digital resiliency effect, which eventually reaches a state of stability rather than greatly diminishing the degree of green development in urban areas. In addition, the heterogeneity analysis reveals that the positive effects of the digital economy are more popular in cities located in the eastern and central regions, as well as in the National Comprehensive Pilot Zone for Big Data. However, these effects do not vary significantly among different ranks of cities. The mechanism test found that the information effect and the capital allocation effect are the mechanisms by which the digital economy affects green development, and there is a “U-shaped” relationship between the digital economy and information asymmetry and capital mismatch. According to the study’s results, improving the digital economy’s governance structure continues to make more sense than merely increasing the number of digital inputs.

Evaluating the Impact of Low-Carbon Urban Policy on Corporate Green Innovation—Evidence from China’s National Low-Carbon City Strategy Program

Low-carbon urban policy (LCUP) and corporate green innovation are considered crucial strategies and methods for reducing urban carbon emissions, addressing climate change, and promoting urban environmental sustainability. This study constructed a quasi-natural experiment based on the low-carbon city strategy program implemented in China in 2010, utilizing data from Chinese prefecture-level cities and publicly listed companies from 2005 to 2020. Employing a multi-period difference-in-differences (DID) approach, this paper reveals that the establishment of low-carbon model cities effectively fosters green innovation in corporations. Further analysis demonstrates that this promotional effect is particularly significant in non-state-owned enterprises, enterprises with high media attention, those with a high level of digitalization, and enterprises located in cities with high levels of green finance and in the Eastern and Central regions of China. These conclusions withstood a series of robustness tests, confirming their validity. Meanwhile, the examination of policy mechanisms reveals that public environmental awareness, government environmental regulation, and corporate environmental information disclosure are three key policy transmission mechanisms through which LCUP affects corporate green innovation. The findings of this study provide significant empirical insights for addressing climate change and enhancing the sustainable capacity of urban environments.

Digital finance and the energy transition: Evidence from Chinese prefecture-level cities

The increasing digitalisation of the financial sector can potentially steer cities towards carbon neutrality, especially through digital finance. We conduct a panel data analysis of Chinese prefecture-level cities from 2014 to 2020 using a spatial econometric model to explore the effect of digital finance on energy transition. Further, we explore the spatial spillover effect and its moderating mechanism. Our results confirm a significant positive correlation between digital finance and energy transition efficiency. Moreover, digital finance is found to engender positive spatial spillover effects on energy transition in neighbouring cities. Finally, the analysis of the moderating effect reveals that digital economy policies can amplify the positive correlation between digital finance and energy transition. This finding highlights the importance and positive role of digital finance in realising energy transition.

A Study on the Spatio-Temporal Evolution Characteristics of Social Development Levels in China

With the increase in regional economic development disparities, a regional coordinated development strategy is put forward that prioritizes human welfare and holistic social progress over a purely materialistic growth model. To address the challenges of balanced regional development, this paper has developed a multidimensional assessment framework of social development encompassing education, healthcare, culture, and social security. Using the entropy weight TOPSIS method, this study measures the social development level across 296 Chinese prefecture-level cities from 1990 to 2020. It explores the spatio-temporal evolution characteristics of China’s social development level through the Dagum Gini coefficient decomposition method and exploratory spatial data analysis. The results indicate that (1) the level of social development in China exhibits a fluctuating upward trend over the time series, showing a phase-wise pattern of decline–rise–rise; (2) there is a clear heterogeneity in the level of social development, with a general hierarchy of Eastern, Northeastern, Western, and Central regions in terms of social development; (3) spatially, China’s social development level has evolved from a patchy distribution in 1990 to a clustered distribution around urban agglomerations by 2020, with pronounced characteristics of spatial imbalance; (4) the level of social development in China displays varying degrees of spatial clustering, with this trend intensifying over time; and (5) over the period 1990–2020, the overall disparity in China’s social development level presents a fluctuating trend, with a notable reduction after an initial increase, and regional disparities following the order of Central, Western, Eastern, and Northeastern regions. This research offers valuable insights for policymakers and scholars seeking to understand and enhance China’s social development landscape.

Illustrating the nonlinear effects of urban form factors on transportation carbon emissions based on gradient boosting decision trees

While prior studies have examined the effects of urban form on transportation carbon emissions, the exploration of nonlinear influences remains limited. This study presents an approach that transcends simple quantification of urban form's impact on transportation carbon emissions by also identifying the threshold range over which urban form variables exert their influence. Using 282 Chinese prefecture-level cities as the sample, this study employs gradient boosting decision trees to identify the nonlinear effects and the relative importance of urban form factors on transportation carbon emissions. We find that urban form factors jointly account for 31.32 % of the predictive power in estimating transportation carbon emissions after controlling for transport facilities, socioeconomic, and demographic factors. Urban polycentricity and transportation carbon emissions generally exhibit an obvious and complex nonlinear relationship. In addition, polycentricity, urban dispersion, the number of (sub)centers, and population density all have clear threshold effects on transportation carbon emissions. We further identified their effective ranges to guide urban development and land use planning.

Spatiotemporal Patterns, Effects, and the Interactive Driving Mechanisms of Urban Sustainability Based on the Eco-efficiency Framework: Evidence from Chinese Prefecture-Level Cities

Spatiotemporal Patterns, Effects, and the Interactive Driving Mechanisms of Urban Sustainability Based on the Eco-efficiency Framework: Evidence from Chinese Prefecture-Level Cities

Clean air policy and green total factor productivity: Evidence from Chinese prefecture-level cities

Clean air policy is an important mechanism for improving the urban environment and promoting green economic development. Green total factor productivity (GTFP) is an important way to measure these impacts. We apply the super-efficiency slack-based measure model, considering undesirable output, and the Global Malmquist-Luenberger index to measure the GTFP of 278 prefecture-level cities in China from 2005 to 2020. We find that GTFP growth is driven by both green technology progress (GTC) and green technology efficiency change (GEC). The traditional total factor productivity is overestimated, because energy and environmental factors are not considered. GTFP growth is higher in the cities in the eastern coastal regions compared to the western regions. We analyze the effect of clean air policy on GTFP using a difference-in-differences model and spatial-difference-in-differences model, and further conduct a heterogeneity analysis and mechanism analysis. The results show that clean air policy promotes GTFP growth. In addition, there is a significant negative spatial spillover effect with respect to the impact of clean air policy on GTFP. The heterogeneity analysis results show that the impact of clean air policy on GTFP growth is lower in resource-based cities and cities in the northern region, compared with non-resource-based cities and cities in the southern region. Further, the impact of clean air policy on GTFP growth is mainly achieved through GTC, GEC, innovation, and financial development. In resource-based cities and cities in the northern region, clean air policy decreases GTFP by inhibiting GTC, innovation, and financial development.

Assessing the effect of urban digital infrastructure on green innovation: mechanism identification and spatial-temporal characteristics

Under the background of digitization and greening in China, digital infrastructure offers new opportunities for developing green innovation. This paper investigates the effect of digital infrastructure on urban green innovation using panel data from 285 Chinese prefecture-level cities between 2011 and 2020, and explains the mechanism and its spatial-temporal dynamic effect. The results demonstrate that digital infrastructure promotes urban green innovation. Talent agglomeration, R&D investment increase, and industrial structure upgrading are crucial channels. Furthermore, depending on a city’s size, human capital, environmental regulations, and financial subsidies, digital infrastructure contributes to urban green innovation differently. Also, there is not only a positive spatial spillover effect of digital infrastructure but a threshold effect that presents a nonlinear trend of rising marginal effect. This study provides a new perspective for promoting digital infrastructure and urban green innovation, which makes a difference in facilitating its high-level development collaboratively.

The impact of the digital economy on urban total factor productivity: mechanisms and spatial spillover effects

Digital economy is the indispensable pathway for driving industrial structural upgrading and fostering innovation and entrepreneurship in cities, ultimately facilitating China's economic transformation. Simultaneously, the enhancement of urban total factor productivity (TFP) serves as a crucial means to achieve high-quality economic development in cities. This study examines the specific impact of the digital economy on urban TFP using a panel data model with a sample of 285 Chinese prefecture-level cities from 2011 to 2019. Additionally, it employs a mediation effect model to test the mechanisms through which the digital economy influences urban TFP and utilizes a spatial Durbin model to analyze the spatial spillover effects of the digital economy on urban TFP. The research findings reveal the following key points: (1)The digital economy has an overall significantly positive impact on urban TFP. (2)The digital economy indirectly promotes urban TFP by encouraging the advancement of industrial structure and fostering innovation and entrepreneurship in cities. (3)The influence of the digital economy on urban TFP exhibits spatial spillover effects, where the digital economy in neighboring cities significantly enhances the TFP growth of local cities.The results of this study contribute to elucidating the mechanistic pathways through which the digital economy affects urban TFP, holding significant practical implications for achieving high-quality economic development in urban areas.

Development of Digital Finance and Enhancement of Regional Innovation in the Context of Dual Circulation

Amidst the framework of dual circulation, innovation emerges as a pivotal strategy for realizing high-quality economic development. Concurrently, digital finance, serving as a potent complement to traditional financial systems, significantly influences regional innovation enhancement. This research employs a spatial panel methodology to thoroughly investigate the inherent mechanisms through which digital finance development shapes regional innovation. Empirical testing is conducted using panel data derived from 283 mainland Chinese prefecture-level cities spanning from 2013 to 2020. The findings underscore that digital inclusive finance plays a crucial role in amplifying regional innovation output, unveiling a distinct spatial impact on innovation. The progression of each facet of digital finance contributes to mitigating supply-side financing constraints, thereby directly fostering heightened regional innovation. The study delves into a Chinese regional sub-sample, revealing a prevalent driving effect with conspicuous heterogeneity across the major regions—East > Central > West. As scientific and technological innovation stands as the primary driving force, its profound interplay with the evolution of financial inclusion in China is evident. This study provides valuable insights to fortify regional modernization efforts and serves as a reference for policymakers and researchers navigating the complex intersection of finance and innovation in the Chinese context.

Local environmental spending spillover effects on green innovation: evidence from cities in China

As the crucial force in achieving harmonious development of the economy and environment, green innovation has been extensively valued. Based on data from Chinese prefecture-level cities from 2007–2019, this research investigates the influence of environmental spending on green innovation, further examining the moderating effect of the urban research and development (R&D) environment. Employing the spatial econometric model, we discover that local environmental spending significantly boosts native green innovation, positively affecting green innovation in nearby cities. Meanwhile, environmental spending’s green innovation effect for different city clusters presents heterogeneous characteristics. Additionally, the urban R&D environment significantly moderates the relationship between environmental spending and green innovation. With the improved urban R&D environment, the incentive effect of environmental spending on green innovation strengthens. Therefore, local governments should appropriately adjust environmental spending policies while also creating a favorable R&D environment, thus stimulating green innovation.

The role of China's carbon emission trading system in economic decarbonization: Evidence from Chinese prefecture-level cities

Based on the panel data from 283 prefecture-level cities in China between 2009 and 2019, this study examines the impact of China's carbon emissions trading system on reducing carbon emissions and its mechanisms, using the PSM-DID method. The findings demonstrate that the carbon emissions trading system can effectively decrease the total carbon emissions in pilot cities in China, and has a positive spatial spillover effect on neighboring cities of the pilot areas. The carbon emission trading system primarily reduces carbon emission by incentivizing businesses to implement eco-friendly practices and improve the industrial structure of pilot cities. Increased financial marketisation can promote the carbon emission reduction effects of the trading system. The impact of the carbon emission trading system on old industrial base cities and inland cities is more significant than those on non-old industrial base cities and coastal cities.

Has inspection supervision effectively reduced the risk of local government debt? Evidence from China

This paper employs a difference-in-differences (DID) model to analyze data from 289 Chinese prefecture-level cities from 2009 to 2016 and comes to the following conclusion: patrol supervision can reduce the risk of local government debt. After conducting a series of robustness tests, including propensity score matching (PSM) tests, transformation study design, and replacement of explained variables, this conclusion remains robust. Further investigation reveals that the effectiveness of inspection and supervision in reducing local government debt risk is more pronounced in regions with a poorer financial ecological environment and a greater soft budget constraint, indicating a substitute function. By examining the impact of patrol supervision on local government debt risk, this paper provides valuable insights for preventing and resolving major risks and offers up recommendations for future efforts in this domain.

How smart city construction affects destination tourism efficiency

To investigate the impact of smart city construction (SCC) on destination tourism efficiency (TE), this study analyzed the impact paths and mechanisms of SCC on destination TE from 3 aspects: technological innovation, informatization, and industrial structure upgrading. Based on panel data of Chinese prefecture-level cities from 2004–2019, we combined a stochastic frontier analysis model with a difference-in-differences model to conduct an empirical analysis to assess the policy effects of SCC on destination TE and validate the impact paths and mechanisms. The results show that the tourism of 153 sample cities show a low TE level overall, an increasing trend year by year, a distribution pattern of high in the east, and low in the middle and west. SCC can significantly improve destination TE, and the impact of SCC on destination TE has spatially heterogeneous.

Digital financial inclusion and tourism development

Digital financial inclusion is reshaping the development of the Chinese economy. This paper examines the impact of digital financial inclusion on tourism development. Using a large sample of 281 Chinese prefecture-level cities for the 2011–2018 period, we find that digital financial inclusion is positively associated with tourism development. The results are consistent in various robustness tests. Mechanism tests show that digital financial inclusion promotes tourism development by enhancing individuals' financial market participation, promoting entrepreneurship activities in the tourism industry, and increasing individuals’ tourism consumption. Further analysis shows that the positive association with digital financial inclusion is more prominent in non-eastern regions and in cities with rich travel resources. Our study suggests that digital financial inclusion is an important factor that promotes tourism development.

Regional Heterogeneity Analysis of Residential Electricity Consumption in Chinese Cities: Based on Spatial Measurement Models

The share of electricity consumption by urban and rural residents in China’s overall electricity consumption is very close to that of the tertiary sector, which has become an important driver of China’s electricity consumption growth. At the same time, due to the mismatch between China’s regional resource endowments and the level of regional development, the regional supply and demand situation for electricity varies. Therefore, it is urgent to clarify the regional differences in residential electricity consumption and the factors affecting it, and accordingly adopt targeted and feasible measures to regulate residential electricity consumption. This article includes data from 285 Chinese prefecture-level cities from 2006 to 2019, and adopts a “three lines” method of region-partitioning (Qinling–Huaihe line, Huhuanyong line, and Shanhaiguan line) to divide four regions. We used spatial econometric models to examine residential electricity consumption and its influencing factors in China from the standpoint of regional heterogeneity. The results show that there is significant regional heterogeneity in residential electricity consumption in China, and the difference between the north of the Shanhaiguan line and other areas is significant. Moreover, there is a positive spatial correlation in the per capita domestic electricity consumption of urban residents, and each influencing factor has obvious regional heterogeneity, among which household appliances are the significant influencing factor. Based on the regional heterogeneity of residential electricity consumption, management measures should be formulated according to local conditions, and the supply of electricity should be ensured by strengthening multidimensional initiatives.

Urban climate adaptability and green total-factor productivity: Evidence from double dual machine learning and differences-in-differences techniques

Climate change has increasingly become a significant challenge to sustainable socio-economic development, and climate adaptation is a key issue that relevant research focuses on regional sustainable development models. By employing panel data between 2007 and 2020 from 284 Chinese prefecture-level cities, this study adopts quasi-experimental methods, including a difference-in-differences design and double dual machine learning model, to study the impact of climate adaptability on green regional sustainable development. Empirical results confirm that the pilot policy of building climate-resilient cities significantly improves urban green total-factor productivity. Difference-in-difference models (derived from entropy-weight and propensity score matching) and double dual learning models also support the improving effect of regional green total-factor productivity after policy intervention. The digital economy has strengthened the green development effect of pilot policies for building climate-adaptive cities. In addition, policy interventions to build climate-adaptive cities promote green urban development by optimizing industrial development structures and enhancing economic growth resilience. In addition, climate adaptability can also attract highly skilled talent and high-quality enterprises, facilitate science and technological progress in urban areas, and thus promoting the green development of cities in China. This study objectively evaluates the effects of climate policies and provides insights for global adaptation to climate change and optimization of public policies.

Does air pollution inhibit digital finance? Evidence from Chinese prefecture-level cities.

Air pollution poses significant health and economic challenges globally and specifically affecting China. Although air pollution has been associated with decreased productivity and biases in decision-making, its effect on the development of digital finance has received limited attention in the literature. By employing city-level data from China covering the period from 2013 to 2020, this research examines the impact of air pollution on digital finance. The results show that deteriorating air quality has a negligible impact on digitalization, whereas it has a negative impact on financial inclusion, measured by usage and coverage metrics. The negative impact on financial inclusion is more noticeable in economically weaker and less developed urban areas and low R&D than in developed areas and economically robust cities. The mechanism analysis shows that air pollution reduces human capital quality, resulting in a decline in financial inclusivity. These findings have significant policy implications, underscoring the necessity for approaches that simultaneously tackle air pollution and foster financial innovation.

Analysis of the spatial urbanization effect of digital finance in China

PurposeThis study aims to empirically examine the impact of digital finance on spatial urbanization and elucidate its underlying mechanisms.Design/methodology/approachUsing panel data of Chinese prefecture-level cities from 2011 to 2021, and using a spatial dynamic panel model, the authors analyzed the effects of digital finance on spatial urbanization and the mechanism of its action.FindingsThe findings of the study reveal that digital finance, along with its sub-dimensions, namely coverage breadth, usage depth and digitization degree, all contribute to the enhancement of spatial urbanization. The information channel effect generated by the development of postal and telecommunication businesses, the goods delivery effect generated by the development of retail businesses and the wealth accumulation effect generated by the accumulation of household wealth are all important channels through which digital finance promotes spatial urbanization. Digital finance exerts a significant promotional effect on spatial urbanization in second-tier cities, third-tier cities and their subsequent tiers. This observation alludes to the regionally inclusive nature of spatial urbanization promotion facilitated by digital finance.Originality/valueThe present study endeavors to fill this void by employing empirical analysis to investigate the ramifications of digital finance on spatial urbanization, thereby shedding light on the pivotal role played by digital finance in expediting the progression of spatial urbanization. This study undertakes an examination of the spatial spillover effects, thus providing a comprehensive exposition of the influence of digital finance on spatial urbanization. This study introduces this crucial dimension, and the empirical findings elucidate that digital finance fosters the evolution of spatial urbanization by broadening the coverage of information channels, augmenting the efficiency of goods distribution and enhancing wealth accumulation efficacy.