Low-Carbon City Policies and Employment in China: Impact Effects and Spatial Spillovers

Lifei Ru () and Yongling Yao
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Lifei Ru: School of Applied Economics, Renmin University of China, Beijing 100872, China
Yongling Yao: School of Applied Economics, Renmin University of China, Beijing 100872, China

Land, 2025, vol. 14, issue 3, 1-25

Abstract: This study examines the impact of low-carbon city policies on urban employment using panel data from 2006 to 2021. The findings reveal that these policies significantly enhance urban employment by promoting green technological innovation, which drives economic growth and creates new job opportunities. Low-carbon policies also exhibit spatial spillover effects, benefiting neighboring cities within a 200 km radius. However, these effects vary non-linearly with distance. The key mechanisms include green technology adoption, industrial structure optimization, and the promotion of green consumption habits. These mechanisms accelerate industrial upgrading, foster the growth of tertiary and green industries, and expand job opportunities in emerging markets. Heterogeneity analysis shows more substantial employment effects in non-resource-based cities, provincial capitals, cities with high government innovation preferences, tertiary sector dominance, and higher urbanization rates. This highlights the need for policies tailored to specific urban characteristics. In conclusion, low-carbon policies integrate climate action with employment growth. Policymakers should invest in green technologies, support industrial transformation, and enhance public environmental awareness to maximize employment benefits, fostering sustainable urban development.

Keywords: low-carbon cities; employment; spatial spillover; heterogeneity analysis (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2025
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