The low-carbon effect of pursuing the honor of civilization? A quasi-experiment in Chinese cities

Ge Li and Huwei Wen

Economic Analysis and Policy, 2023, vol. 78, issue C, 343-357

Abstract: Decentralization has always been considered the reason local governments in China lack incentives for green development. Whether conferring honorary titles can motivate the competition mode of local governments to shift to low-carbon sustainable development is a scientific problem worth studying. In this paper, the civilized city policy is taken as a quasi-experiment, and its effect is evaluated using the method of difference-in-differences. The results show that civilized city policy can effectively promote the improvement of green total factor carbon efficiency. The mechanism is that the policy encourages local governments to mobilize multiple actors to participate in green development practices including strengthening local governments’ environmental control, promoting the technological innovation of enterprises, and increasing public participation in environmental affairs. Heterogeneity analysis of local government incentives shows that the civilized city policy is more effective in cities where local officials are less than 54 years old and the city GDP growth rate is midstream in the province. The study confirms that awarding honorary titles to cities in China can effectively guide local governments toward a sustainable development model and provides new ideas for other countries in the world to use local policies to address global climate change.

Keywords: Civilized city policy; Carbon efficiency; Local government; Incentive policy; Difference-in-differences (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:78:y:2023:i:c:p:343-357

DOI: 10.1016/j.eap.2023.03.014

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