Pilot Zones Research Articles

Harmonizing Digital Trade for Sustainable Stride: Unveiling the Industrial Pollution Reduction Effect of China's Cross-Border E-Commerce Comprehensive Pilot Zones

As a key export-oriented economy, China faces significant challenges to its green economic development due to industrial pollution. While digital trade is crucial for sustainable development, its impact on industrial pollution has not been studied. This paper addresses this gap by adopting prefecture-level data from 2005 to 2021 and using a staggered difference-in-differences model to assess the impact of comprehensive pilot zones policy of cross-border e-commerce (CBEC) on industrial sulfur dioxide pollution. The findings indicate that CBEC significantly reduces industrial sulfur dioxide emission intensity, with the effect growing stronger over time. The effect is particularly notable in eastern and western regions, large cities, cities with underdeveloped digital infrastructure, and cities with lower pollution. Mechanism analysis reveals that CBEC lowers industrial emission intensity by driving structure upgrading, fostering green innovation, and advancing digital transformation. This paper emphasizes that the government can expedite the green transformation of the economy by integrating digital trade with industry.

Has the Policy of National Agricultural Green Development Pilot Zones Enhanced the Agricultural Eco-Efficiency? Observation Based on the County-Level Data from Hubei Province of China

China’s agricultural green development is of great significance to protecting the ecological environment, ensuring food security, and promoting rural revitalization. This study considers China’s agricultural green development pilot zones policy as a natural experiment to examine its impact on regional agricultural eco-efficiency. Based on county-level data in Hubei Province from 2013 to 2021, the EBM-Undesirable model was employed to measure regional agricultural eco-efficiency. Then, the staggered DID model was conducted to estimate the policy impact. The results indicate that the pilot zones policy significantly enhances the agricultural eco-efficiency in the designated areas. The results from heterogeneity and mechanism analysis indicate that the pilot zones policy has a more substantial effect on the western region and less-affluent counties, and rural innovation serves as an intermediary variable for the policy to exert the “green” effect. Therefore, it is crucial for the government to consider regional disparities and the role of rural innovation when advancing policy implementation. Tailoring measures to suit specific local circumstances and consistently enhancing agricultural eco-efficiency in different regions is essential.

The impact of green finance on labor income share: Evidence from green finance reform and innovation pilot zone

Enhancing the labor income share (LIS) is essential for optimizing the income distribution structure and achieving the goals of Chinese modernization. Through the panel data of Chinese A-share listed enterprises from 2013 to 2022, we construct a multi-period difference-in-differences model to evaluate the effect of the green finance reform and innovation pilot zones (GFRIPZ) on the enterprises’ LIS and its underlying mechanisms. The research results show that: (1) The GFRIPZ significantly increased the LIS of enterprises. And this conclusion still holds after a series of robustness checks. (2) Mechanism analyses indicates that the GFRIPZ primarily enhances the LIS by alleviating enterprises’ financing constraints and increasing operating income. (3) Heterogeneity analyses reveal that, compared to the eastern China and state-owned enterprises, the income effect of GFRIPZ is stronger in the central-western China and non-state-owned enterprises.

Big data development and labor income share: Evidence from China's national big data comprehensive pilot zones

In the midst of the rapid development of the digital economy, data has emerged as a new core production factor. It not only creates value for producers but also benefits the majority of ordinary workers, playing a crucial role in optimizing income distribution and promoting common prosperity. Utilizing data from Chinese A-share listed companies from 2012 to 2021, this study evaluates the impact of big data development on the labor income share of enterprises, employing the establishment of China's national big data comprehensive pilot zones as a quasi-natural experiment. Additionally, it examines the heterogeneity of this impact across regional, industry, and firm levels. The findings reveal that big data development significantly increases the labor income share of firms, mainly through mitigating labor mismatch, improving innovation capability, and upgrading human capital. Heterogeneity analysis shows that big data development exerts a stronger effect on eastern and labor-rich regions, high-tech and non-labor-intensive industries, big-data industries and low-competition industries, as well as state-owned and mature enterprises. This study provides policy insights on fully harnessing the benefits of big data pilot policy to increase labor income share, with important implications for developing countries.

Green finance and innovative cities: Dual-pilot policies and collaborative green innovation

As the impacts of climate change intensify, urban green innovation has emerged as a critical technological approach for reducing carbon emissions and addressing climate-related risks. In this study, we analyze data from 282 prefecture-level cities in China from 2007 to 2020. Using the time-varying difference-in-difference model, we examine the underlying mechanisms of how green finance and urban innovation policies synergistically drive urban green innovation. Our findings reveal that the dual-pilot policies, namely, Green Finance Reform and Innovation Pilot Zones and Innovative Cities Pilots, have significantly boosted green innovation by leveraging the resource allocation effect. Further research shows that the green innovation is more effective in the central and eastern regions, cities facing resource decline, cities regenerating resource-, and rust-belt areas during the dual-pilot policy implementation process. Moreover, these dual-pilot policies demonstrate a synergy of “1 + 1 > 2.” These results offer fresh insight into further deepening urban policy pilot initiatives.

How free trade pilot zones enhance agricultural green total factor productivity? Theory and evidence from China

IntroductionGiven the dual constraints of limited resources and environmental concerns, achieving green development in agriculture helps to enhance national food security, resource security, and ecological security.MethodsUtilizing panel data sourced from 30 provinces within China, spanning the years from 2001 to 2021, this paper employs the super-efficiency Slack-Based Measure (SBM) model and the Global Malmquist-Luenberger (GML) index to measure agricultural green total factor productivity (AGTFP). It utilizes methods such as the stepwise Differences in Differences (DID), mediation effect models, and moderating effect models to systematically explore the impact of the implementation of Free Trade Pilot Zones (FTPZs) on AGTFP and its mechanisms of action.ResultsThe study finds: (1) Establishing FTPZs significantly boosts AGTFP, indicating a profound positive influence; (2) The promotional effect of FTPZs on AGTFP is stronger in the eastern and central regions, as well as in major grain-producing areas; (3) FTPZs may enhance AGTFP by promoting the effect of agricultural structure upgrading, i.e., a transmission mechanism exists from FTPZs to the agricultural structure upgrading effect to AGTFP; (4) The agricultural scale effect plays a positive moderating role in the impact of FTPZs on AGTFP.DiscussionIt is advisable to optimize agricultural measures related to FTPZs, promote agricultural structural upgrading and scale enhancement, adapt strategies to local conditions to advance green agricultural development, and thereby promote the coordinated development of FTPZs and AGTFP.

Impact of Big Data on Carbon Emissions: Empirical Evidence from China’s National Big Data Comprehensive Pilot Zone

Big data is a pivotal factor in propelling the digital economy forward and emerges as a novel driver in realizing the goals of carbon peaking and carbon neutrality. This study focuses on a quasi-natural experiment, namely national big data comprehensive pilot zones (NBD-CPZs), and employs a multi-period difference-in-differences (DID) model to identify the influence of big data on carbon emissions. The findings of this study are as follows. Overall, big data significantly reduces carbon emissions within the pilot zones. Mechanism analysis shows that big data reduces urban carbon emissions by promoting green innovation, optimizing energy structure, mitigating capital mismatch and improving public awareness of environmental protection. Heterogeneity analysis shows that the carbon reduction effect of big data are more pronounced in cities with high levels of digital economy, non-resource-based cities, cities with strong intellectual property rights protection and the Guizhou Province. Spatial effect analysis indicates that within a radius of 400–500 km, the NBD-CPZ increases urban carbon emissions, signifying a significant siphoning effect; within a radius of 500–900 km, the NBD-CPZ reduces urban carbon emissions, signifying a significant spillover effect, and beyond a distance of 900 km, the spatial effect of the NBD-CPZ is not significant. Based on the above conclusions, this study puts forward several policy recommendations to effectively exert the carbon emission reduction effect of big data.

Addressing territorial digital divide through digital policy: lessons from China's national comprehensive big data pilot zones

ABSTRACT Governments around the world have paid considerable attention to Information and Communication Technology for Development (ICT4D) initiatives. However, there is no clear evidence that current digitization strategies are meeting the expectations of inclusive and sustainable development. Based on panel data from Chinese prefecture-level cities, this paper constructs a quasi-natural experiment with the establishment of the National Comprehensive Big Data Pilot Zones (BDPZ) to examine whether and how big data-based digital policies can address the digital divide. The results show that the construction of the BDPZ significantly contributes to addressing the territorial digital divide. And this policy effect is influenced by factors such as regional innovation capacity, geographical location, and administrative authority. The mechanism analysis shows that the institution-led diffusion effect and administrative supply diffusion effect under the authoritative diffusion model, and the market-driven diffusion effect under the induced diffusion model are the intrinsic mechanisms of BDPZ in addressing the digital divide.

Digital technology and domestic value-added ratio in export: Evidence from China's pilot zones for integrating informatization and industrialization

Accelerating the penetration of digital technology into industrial transformation is an important concern for developing economies that dedicate to achieve high-quality development of foreign trade. Regarding China's pilot zones for integrating informatization and industrialization (PZII) as an exogenous shock of digital technology application, this study sheds light on effects of digital technology on domestic value-added ratio in export (DVAR) based on fine-grained firm-level data covering 2002–2013. Our finding reveals that digital technology improves firms’ DVAR, and the results remain consistent after conducting a series of robustness checks and addressing potential endogeneity. The heterogeneity analysis suggests that digital technology exerts significantly positive effects on DVAR of processing trade rather than general trade firms, foreign rather than domestic firms, and eastern rather than middle and western firms. The mechanism test discloses that digital technology positively affects DVAR through cost reduction effects and technology progress effects. Further investigation shows that market competition plays a positive role in moderating effects of digital technology on firms’ DVAR. Lastly, this study puts forward corresponding policy implications based on the conclusions.

Exploration of Traffic Accident-Based Pilot Zones for Autonomous Vehicle Safety Validation

Recently, the commercialization of autonomous vehicles has increased the importance of verifying vehicle safety through autonomous trials. Autonomous driving trials are conducted in limited areas within artificially constructed test roads and pilot districts and directly explore road sections and areas with similar environments to ensure the safety of AVs driving on real roads. Many previous studies have evaluated the complex response potential of AVs by deriving edge scenarios to ensure their safety. However, difficulties arise in exploring real roads with traffic accident factors and configurations similar to those in edge scenarios, making validation on real roads uncertain. This paper proposes a novel method for exploring pilot zones using traffic accident data to verify the safety of autonomous vehicles (AVs). The method employs a CNN + BiGRU model trained on DMV dataset data to classify traffic accidents as AV- or human-caused. The model’s classification accuracy was evaluated using recall, precision, F1 score, and accuracy, achieving 100.0%, 97.8%, 98.9, and 99.5%, respectively. The trained model was applied to the KNPA dataset, identifying 562 out of 798 cases as AV-like, indicating potential areas of high accident density due to AV operation. Outlier detection and DBSCAN clustering were utilized to identify compact pilot zones, effectively reducing the area size compared to raw data clusters. This approach significantly lowers the cost and time associated with selecting test roads and provides a viable alternative for countries lacking real AV accident data. The proposed method’s effectiveness in identifying pilot zones demonstrates its potential for advancing AV safety validation.

The analysis of the medical tourism expansion policy in Taiwan: a policy analysis using Kingdon’s multiple streams

BackgroundSince 2006, Taiwan has actively pursued the development of its medical tourism industry. In 2013, the government sought to bolster this sector by integrating medical tourism into the Free Economic Pilot Zones. Despite narrowly missing the mark, the initiative failed to materialize into law. This qualitative study endeavors to discern the pertinent factors influencing the agenda-setting process for incorporating medical tourism into the Free Economic Pilot Zones in Taiwan.MethodsA comprehensive examination of policies concerning the legitimation of medical tourism within the Free Economic Pilot Zones was undertaken through semi-structured interviews and a thorough review of policy documents. Key informants were strategically selected using purposive and snowball sampling techniques. Thematic analysis was applied to scrutinize the amassed data and organize it within the framework of Kingdon's multiple streams.ResultsIn the problem stream, increasing financial strains and cost containment pressures under the National Health Insurance program have long driven health care providers to seek further opportunities in medical tourism. The existing barriers to expanding medical tourism in Taiwan included diplomatic tensions (specifically cross-strait relations), public concerns about commercialization of medical care and reduced their access to care, and legal and language barriers. Within the policy stream, factors such as franchise fees to support national health insurance, limited number of demonstration medical tourism sites and services allowed, the allowance of foreign medical personnel, regulations governing domestic physicians, the importance of demonstration, regulation, and accreditation, as well as restrictions on investment from China, were emphasized. The politics stream highlights factors such as governmental support, opposition from opposing parties, public concerns and critics from academia and non-governmental organizations, and skepticism from medical faculties.ConclusionAcknowledging the recognized challenges in enacting the medical tourism provision of the Free Economic Pilot Zones Special Act and emphasizing the political will of leadership, a viable policy solution remained elusive. Although a window of opportunity existed for the passage of the bill, it waned as public concerns sidelined the issue from the national agenda. The Taiwan case underscores the necessity for meticulous consideration of issues, proposed solutions, and political dynamics to achieve successful policy enactment.

Green finance and grey air: Assessing the impact of green finance pilot zones on company-level pollution in China

Abstract To achieve sustainable and high-quality economic growth, China introduced the Pilot Zones for Green Finance Reform and Innovations in 2017. While this policy aims to promote the green transition of businesses and has drawn significant attention, its micro-operational mechanism and firm-level impact remain largely unexplored. This study addresses this research gap by employing a quasi-experimental approach to examine the policy’s effects on companies. The empirical results of our research highlight an unexpected 5.53% surge in the PM2.5 concentration levels in the vicinity of these firms. Given these findings, we call on policymakers to reflect on the environmental consequences following the roll-out of the Green Finance Reform. Simultaneously, we stress the significance of corporate responsibility in disclosing pertinent indicators and environmental data.

Green finance pilot policy and corporate environmental social responsibility: empirical evidence from China's green finance reform and innovation pilot zones.

The establishment of green finance reform and innovation pilot zone (GFRIPZ) is a pivotal strategy for harmonizing the twin goals of economic prosperity and environmental preservation. By applying panel data on Chinese A-share listed firms from 2011 to 2022, this study examines the influence of China's green finance pilot policy on corporate environmental social responsibility (ESR) using a difference-in-differences (DID) model. The study's findings indicate that the green finance pilot policy promotes corporate environmental social responsibility. The results remain robust after a series of robustness tests. Moreover, mechanism analysis reveals that the pilot policy promotes firms' ESR through three key channels: financing constraints, green innovation, and corporate governance mechanisms. Additionally, analyst attention can positively moderate the promotional effect of the green finance pilot policy on corporate ESR. Furthermore, this study reveals that the green finance pilot policy's impact on corporate ESR is more pronounced among large-scale firms and firms operating in regions characterized by stringent environmental regulations and greater marketization. The empirical findings present evidence for enhancing ESR through the implementation of the green finance pilot policy in China and offer insights for refining the green finance system.

Does cross-border e-commerce improve China’s imported product quality? – A quasi-natural experiment based on the establishment of cross-border e-commerce comprehensive pilot zones

We take the establishment of cross-border e-commerce comprehensive pilot zones as the quasi-natural experiment, based on China’s General Administration of Customs Database, China Customs Online Inquiry Platform, ‘Cross-Border E-Commerce Retail Import Commodity List’ and other data. By employing the staggered DID method, this paper systematically investigates the potential of cross-border e-commerce to enhance the quality of imported products. The research findings reveal the following: Since the introduction of the cross-border e-commerce comprehensive pilot zones, there has been a significant improvement in the quality of imported products in China. These effects, however, vary across different product types and regions, suggesting heterogeneous impacts. The cross-border e-commerce comprehensive pilot zones have facilitated the development of import trade in China through three main avenues: reducing search costs, resolving financing challenges, and lowering tariffs. These measures have collectively contributed to the reduction of trade costs.

The Policy of Cross Border E-Commerce Comprehensive Pilot Zone and the Growth of Urban Total Factor Productivity — Empirical Testing Based on Double Difference Method

Since the establishment of the first pilot zone in 2015, China’s cross border e-commerce has rapidly developed, becoming a new engine driving international trade. This paper delves into the impact of China’s cross border e-commerce comprehensive pilot zones on urban total factor productivity. The paper first provides an overview of the development trajectory and current status of cross border e-commerce comprehensive pilot zones and analyzes the potential mechanisms through which these pilot zones might affect urban TFP. Utilizing data from 70 major cities between 2011 and 2019, the study employs a Difference-in-Differences approach to evaluate the impact of the pilot zone policies on urban TFP growth. The results indicate that the establishment of pilot zones significantly enhances urban TFP growth rates, with more pronounced effects in the eastern regions. The regional heterogeneity test reveals that the pilot zones positively influence TFP growth in the eastern and central regions, while the impact on the western and northeastern regions is not significant. Robustness checks further confirm the significance of the policy effects. Based on the findings, the paper proposes policy recommendations, including strengthening policy support, enhancing infrastructure development, reinforcing technological innovation capabilities, and promoting regional coordinated development to fully leverage the role of cross border e-commerce comprehensive pilot zones in boosting urban TFP and driving high-quality economic development. Overall, this paper provides empirical evidence for understanding how cross border e-commerce comprehensive pilot zones enhance urban TFP through technological innovation and policy support, offering important insights for optimizing relevant policies and promoting regional economic development.

Turning “green” into “gold”: A study on the impact of green finance pilot zone policy on energy carbon emission efficiency

AbstractAs a crucial mechanism for advancing sustainable development, green finance invigorates national initiatives to reach peak carbon emissions and achieve carbon neutrality. This study leverages panel data from 215 Chinese cities spanning 2013–2022, using the green finance pilot zone policy (GFZ) as a quasi‐natural experiment. By employing difference‐in‐differences methodologies, this research examines the effects of GFZ on energy carbon emission efficiency (ECE) in China, along with its spatial spillover impacts. The findings reveal a substantial enhancement in ECE attributable to GFZ, with results remaining robust through various stability checks. Mechanism analysis further indicates that GFZ boosts ECE by promoting green innovation and facilitating industrial upgrading and transformation. Additionally, heterogeneity analysis suggests that GFZ is more effective in cities with higher marketization levels. Improvements in ECE among different types of resource‐based cities are observed in the order of declining, regenerative, growing, and mature cities. Spatial analysis reveals that the spillover effects of GFZ peak at a distance of 500 km from the pilot zones. This study not only provides empirical evidence supporting the expansion of GFZ but also offers a unique Chinese perspective on sustainable development.

Has the Digital Economy Improved the Urban Land Green Use Efficiency? Evidence from the National Big Data Comprehensive Pilot Zone Policy

The advancement of the big data industry is playing a pivotal role in urban land management refinement. Recently, China initiated a big data strategy, establishing national big data comprehensive pilot zones (NBDCPZs) across diverse regions. These initiatives present substantial opportunities for enhancing the urban land green use efficiency (ULGUE). Consequently, in this study, we utilized the super-efficiency slack-based measure (SBM) model with undesirable outputs to assess the ULGUEs across 281 prefecture-level cities in China from 2006 to 2021. Subsequently, leveraging the NBDCPZ establishment as a quasi-natural experiment, we employed the difference-in-differences (DID) method to empirically explore the impact of the NBDCPZ policy on the ULGUE for the first time. The findings revealed the following: (1) The implementation of the NBDCPZ policy significantly enhances the ULGUE; (2) the effects are mediated through mechanisms such as fostering technological innovation, mitigating resource misallocation, and promoting industrial agglomeration; (3) the heterogeneity analysis emphasizes the increased policy effectiveness in cities characterized by fewer natural resources, lower economic growth pressures, stable development stages, and moderate digital infrastructure and human capital levels; and (4) further analysis demonstrates the significant positive spillover effects of the NBDCPZ policy on the ULGUEs of neighboring non-pilot cities, with a diminishing impact as the proximity between pilot and non-pilot cities decreases. Overall, this study contributes to the literature on the relationship between the digital economy and land utilization, offering valuable insights for achieving sustainable urban development.

Positive impacts of green finance on environmental protection investment: Evidence from green finance reform and innovations pilot zone

After long-term development, the global economic level has improved significantly, but environmental issues generated by early extensive development seriously threaten the survival of human beings. China, in particular, urgently needs to promote sustainable development through green finance policies. For this reason, this paper regards the 2017 eight pilot zones in five provinces for green finance reform and innovations (GFRIs) as a quasi-natural experiment, and explores whether it can encourage investment in environmental protection in heavily polluting enterprises by using difference-in-differences-in-differences (DDD) model. The paper finds that: First, GFRIs can bolster investment in environmental protection in heavy polluting enterprises. The results remain consistent after several robustness checks, covering the placebo test, PSM-DID test and so on. Second, mechanism tests find that the policy promotes environmental protection investment by alleviating financing constraints and cutting financing costs. Third, heterogeneity analysis shows that the promotion effect of GFRIs on environmental protection investment is more pronounced for provinces with higher percentages of secondary industry GDP, large-scale enterprises, and enterprises with better ESG management. This paper demonstrates the beneficial influence of GFRIs on promoting the transformation of heavy polluting enterprises and provides suggestions for the improvement of such policies.

Do pilot zones for green finance reform and innovation avoid ESG greenwashing? Evidence from China

As ESG investments have grown, many companies are emphasizing them to impress capital markets and consumers with their responsibility and environmental consciousness. However, managers in unethical companies greenwashing ESG reports to keep clients. The present investigation employs quasi-natural experiment data obtained from a sample of 1200 Chinese A-share listed companies spanning the period from 2011 to 2021 to examine how the Green Finance Reform and Innovation Pilot Zone (GFRIPZ) affects ESG greenwashing. GFRIPZ can prevent publicly traded companies from ESG greenwashing. The statistical analysis of heterogeneity demonstrates that GFRIPZ in non-state-owned, mid-west, heavy-polluting, manufacturing industries reduces ESG greenwashing. GFRIPZ suppresses corporate ESG greenwashing better in companies with severe financial constraints and a poor corporate reputation. GFRIPZ's inhibition of corporate ESG greenwashing is enhanced by internal and external monitoring. This study shows how financial markets affect firms' ESG greenwashing. It helps implement GFRIPZ theoretically. It also recommends raising listed companies' awareness of ESG disclosure and reducing corporate ESG greenwashing.

Green finance policy and labor demand: Evidence from China

Using the implementation of “Green Finance Reform and Innovation Pilot Zone” (GFPZ) policy as a quasi-natural experiment, we investigates the impact of the GFPZ on enterprises' labor demand by considering 2009–2021 data for a sample of listed firms. The results show that the implementation of this policy has increased labor demand in pilot zones. After controlling for endogeneity and testing robustness, we find that the results remain valid. Furthermore, the mechanism test results show that the implementation of GFPZ policy has a positive impact on the labor demand of enterprises by improving operational capability, enhancing development prospects, and optimizing social evaluation. However, it reduces labor demand by exacerbating the financing pressure on enterprises. Additionally, further analysis reveals that the GFPZ policy contribute to the improvement of labor quality. The impact of policy was more significant for manufacturing enterprises and enterprises located in cities with high environmental pressure.