Service Trade and New Energy Use: A Study of China’s Pilot Cities from the Perspective of Institutional Innovation

Da Huo, Wenjia Gu, Tianying Sun () and Zixuan Gao
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Da Huo: School of International Business, Beijing Foreign Studies University, Beijing 100089, China
Wenjia Gu: School of International Trade and Economics, Central University of Finance and Economics, Beijing 102206, China
Tianying Sun: School of International Trade and Economics, Central University of Finance and Economics, Beijing 102206, China
Zixuan Gao: School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China

Energies, 2025, vol. 18, issue 20, 1-17

Abstract: As trade in services continues to play an increasingly important role in international trade, effectively integrating its advancement with green development has become a key issue for China in shaping a new development paradigm. This study treats the service trade pilot city policy as a quasi-natural experiment, employing the Difference-in-Differences (DID) method to investigate the policy’s impact on urban green energy use. The findings indicate that the policy significantly boosted green energy consumption in pilot cities. Heterogeneity analysis reveals more pronounced policy effects in eastern regions and provinces with smaller populations. Furthermore, synergistic effects emerge when this policy interacts with artificial intelligence (AI) technology policies and urban environmental policies, further amplifying green energy consumption outcomes. Consequently, this study proposes recommendations including strengthening institutional innovation in green services trade within pilot zones, establishing cross-regional green collaboration networks, and promoting multi-policy coordination. These findings offer valuable insights for developing countries seeking to achieve sustainable development through services trade liberalization.

Keywords: service trade; green energy; difference-in-differences (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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