The impact of pilot Low-carbon city policies on urban energy ecological efficiency

Dong Lu, Zeng Wenling and He Aiping

Economic Analysis and Policy, 2025, vol. 87, issue C, 1014-1031

Abstract: Against the backdrop of increasing dependence on foreign energy and accelerated energy transformation, improving energy ecological efficiency (EEE) is crucial to ensuring national energy security. This study employs a super-efficiency MinDS model, along with a staggered difference-in-differences (DID) approach, to examine the impact of China's pilot Low-Carbon City (LCC) policy on EEE. The results reveal that the low-carbon city (LCC) pilot policy significantly enhances energy ecological efficiency. This improvement is primarily achieved through two channels: the "visible hand" of government—manifested in stricter environmental regulation and increased investment in environmental protection—and the "invisible hand" of the market—reflected in the stimulation of green industry vitality and the promotion of green technological innovation. Further heterogeneity analysis reveals that the policy's impact is more pronounced in central and western regions, non-resource-based cities, and cities with higher administrative rankings. These findings confirm that developing low-carbon cities is a practical policy approach to improving energy ecological efficiency. More importantly, the results provide robust empirical evidence and actionable insights for advancing national energy security strategies and supporting the achievement of global climate goals.

Keywords: Low Carbon City; Energy ecological efficiency; Staggered DID (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:1014-1031

DOI: 10.1016/j.eap.2025.07.002

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