The Low-Carbon Policy and Urban Green Total Factor Energy Efficiency: Evidence from a Spatial Difference-in-Difference Method

Da Gao, Yanjun Cao () and Chang Liu ()
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Da Gao: School of Law and Business, Wuhan Institute of Technology, Wuhan 430200, China
Yanjun Cao: School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China
Chang Liu: School of Economics, Huazhong University of Science and Technology, Wuhan 430070, China

IJERPH, 2023, vol. 20, issue 4, 1-20

Abstract: In the post-epidemic background of the low-carbon economy and sustainable development, the low-carbon city pilot program (LCCP) is viewed as a practical method of improving energy efficiency. This study explores the spatial spillover effects of LCCP on green total factor energy efficiency ( GTFEE ) by developing a spatial difference-in-difference (SDID) model. Furthermore, we apply the mediating effects model to verify whether the rational allocation of resources is an influential channel for the spillover effect of LCCP policies. The results indicate that the LCCP policy has not only improved the local GTFEE by approximately 1.8%, but it also has a profound impact on the surrounding regions as well, which is about 76.5% that of the pilot cities. Additionally, the estimated results of the mediating effect model indicate that optimizing labor force and capital allocations are two essential channels through which the LCCP policy may contribute to improving regional cities’ GTFEE . Accordingly, the pilot cities should establish specific measures for rational resource allocation and promote the spatial spillover model of sustainable development.

Keywords: low-carbon economy; energy efficiency; spatial spillover effect; mechanism analysis (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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