Neighborly Gains? The Green Spillover Effects of Low‐Carbon City Pilot Policy

Huiru Wei, Jie Zhang and Kuiran Yuan

Growth and Change, 2025, vol. 56, issue 4

Abstract: The Low‐Carbon City Pilot Policy (LCCPP) represents a key institutional initiative in China to reduce carbon emissions and promote green development, serving as a foundation for achieving green technological innovation (GTI). Existing studies have primarily focused on the low‐carbon performance and mechanisms of pilot cities themselves, while overlooking the spillover effects of the policy on in neighboring cities. This study employs a difference‐in‐differences method to examine the green spillover effects of the LCCPP, focusing on neighboring non‐pilot cities of pilot areas. The study finds that the LCCPP significantly improves GTI in neighboring non‐pilot cities, primarily through competitive pressure, imitation learning, and financial transmission effects. Heterogeneity analysis reveals that the green spillover effects of the LCCPP are more pronounced when neighboring cities are located in the eastern and central regions, have well‐developed infrastructure, and exhibit strong green governance capacity. Further analysis shows that the spillover effects of the LCCPP are closely linked to the strength of economic ties between cities. Moreover, the spillover effects exhibit a significant distance decay pattern, with the effective spillover range limited to within 200 km. Our findings offer valuable insights for promoting GTI and accelerating the construction of low‐carbon cities.

Date: 2025
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