Administrative division adjustment and enterprise carbon emissions: Evidence from City-County Merger in China

Qihang Li and Quanfei Zhang

Energy Economics, 2025, vol. 149, issue C

Abstract: To improve urbanization and promote economic development, China has implemented the City-County Merger Policy (CCMP). This study uses a staggered Difference-in-Differences (DID) method to explore how the CCMP affects corporate carbon intensity. We focus on two main components: economic integration and political integration. Our findings show that the CCMP increases the overall carbon emission intensity of companies. This increase occurs due to the “evacuation effect” of economic integration. At the same time, the policy reduces emissions through the “governance effect” of political integration. This research helps us understand how changes in administrative structures can influence environmental outcomes. It also provides valuable insights for policymakers who want to balance urbanization with sustainable development.

Keywords: City-county merger policy; Carbon emission intensity; Economic integration; Political integration (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:149:y:2025:i:c:s0140988325006346

DOI: 10.1016/j.eneco.2025.108807

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