The impact of new energy pilot city policies on urban green innovation: Evidence from China’s city level

Dan Ma, Yanjin Zhu and Chien-Chiang Lee

Economic Analysis and Policy, 2025, vol. 87, issue C, 585-604

Abstract: This study examines the impact of China's New Energy Pilot Cities Policy (NEPCP) on urban green innovation (GI) using a sample of 273 cities and the Neural Network Difference-in-Differences (NN-DID) method. The findings reveal that NEPCP significantly enhances urban GI, primarily through optimizing green energy behavior and improving carbon emission efficiency. While green innovation itself exhibits spatial spillover effects, NEPCP does not significantly influence GI in neighboring cities, highlighting the policy's targeted implementation. Heterogeneity analysis indicates that the policy's effects are more pronounced in eastern and central regions compared to western regions, and cities with higher levels of economic equality benefit more from the policy. This study not only enriches theoretical research on the relationship between new energy policies and GI but also provides empirical evidence and practical insights for regional green economic development and sustainable policy design.

Keywords: New energy pilot cities policy; Green innovation; Neural network difference-in-differences; Regional heterogeneity (search for similar items in EconPapers)
JEL-codes: C23 C45 Q48 Q56 R58 (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:585-604

DOI: 10.1016/j.eap.2025.06.029

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