The Effects of the Low-Carbon Pilot City Program on Green Innovation: Evidence from China

Abstract

This study examines the effectiveness of the low-carbon pilot city program in promoting green innovation outcomes in China. Using a time-varying difference-in-differences model based on 277 cities from 2003 to 2019, this study finds that the implementation of the low-carbon pilot city program has a positive and significant impact on city-level green innovation outcomes. The policy effect is heterogeneous across different urban infrastructure characteristics, including geographic location, city scale, factor endowment, carbon emission intensity, and ICT infrastructure. This study provides important insights into the effectiveness of low-carbon policies in promoting green innovation and has important implications for policymakers and practitioners who are interested in promoting sustainable development in emerging economies.