The Impact of Sustainable Regional Development Policy on Carbon Emissions: Evidence from Yangtze River Delta of China

Jinxing Hu, Cuiying Shao () and Zhaolong Zhang
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Jinxing Hu: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China
Cuiying Shao: School of International Relations & Public Affairs, Fudan University, Shanghai 200062, China
Zhaolong Zhang: Faculty of Economics and Management, East China Normal University, Shanghai 200062, China

Energies, 2022, vol. 15, issue 24, 1-25

Abstract: Urban agglomerations are becoming an increasingly important factor in advancing regional development and reshaping a new pattern of regional competition. However, few studies are focused on the impact of expanding urban agglomerations on reducing carbon emissions and its possible mechanism. Based on 285 city-level panel data from 2006 to 2017, this paper uses a staggered Difference-in-Differences (DID) model to explore the reduction effect and its possible mechanism of sustainable regional development policy, characterized by urban agglomeration expansion policy in the Yangtze River Delta, on carbon emissions with policy shocks in 2010 and 2013. The results are as follows: (1) The urban agglomeration expansion policy shows a significant marginal contribution to the reduction of carbon emissions, especially for the later joined (new) cities, and the reduction effect is particularly significant in the first and third years after the expansion, indicating that there are significant short-term and long-term reduction effects of the expansion policy. (2) The heterogeneities of reduction effect among three provinces are significant. Zhejiang Province enjoys the largest proportion carbon emission reduction effect, followed by Anhui and Jiangsu provinces. To be specific, urban agglomeration expansion in Zhejiang Province reduced carbon emissions and carbon emissions intensity in the overall, incumbent cities and new cities, while it only increased the total carbon emissions of the incumbent cities in Jiangsu province. (3) The heterogeneities of reduction effect brought by 2010 and 2013 are also significant. The urban agglomeration expansion policy in 2010 reduced carbon emissions on the whole cities and the incumbent cities with later joined cities excluded, while it had a significant reduction effect on the total, incumbent cities, and the new cities in 2013. (4) There are two possible mechanisms of this reduction effect. One is the strengthening of economic ties and enhanced environmental synergy between governments, called the market integration mechanism, which only has a significant effect on carbon emission reduction in the incumbent cities. Another is through the upgrade of the structure of regional industries, which has a significant effect in both the incumbent and new cities. These findings suggest that when formulating urban agglomerations polices, governments must take into account the carbon emissions effect, and advance the upgrading of industrial structure in the urban agglomeration.

Keywords: urban agglomeration expansion policy; carbon emission; green economy; sustainable regional development; Yangtze River Delta (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: 2022
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