Can Urban Rail Transit in China Reduce Carbon Dioxide Emissions? An Investigation of the Resource Allocation Perspective

Shengyan Xu (), Yibo Chen and Miao Liu
Additional contact information
Shengyan Xu: School of Economics and Finance, Hohai University, Hohai Avenue No. 1915, Changzhou 213200, China
Yibo Chen: School of Economics and Finance, Hohai University, Hohai Avenue No. 1915, Changzhou 213200, China
Miao Liu: School of Economics and Finance, Hohai University, Hohai Avenue No. 1915, Changzhou 213200, China

Sustainability, 2025, vol. 17, issue 9, 1-32

Abstract: The construction of urban rail transit plays a crucial role in improving traffic conditions in large cities, promoting green urban development, and reducing carbon dioxide emissions. Based on Chinese urban data, this paper employs a time-varying difference-in-difference model combined with the Heckman two-step method to control the sample selection problem. The objective of this methodology is to ascertain whether urban rail transit exerts a traffic creation effect or a traffic substitution effect. The following results were found: (1) Urban rail transit notably reduces the bus ridership per capita and the carbon dioxide emissions per capita in cities, a finding which passes a series of robustness tests, and the traffic substitution effect increases as the number of urban rail transit lines increases. (2) Heterogeneity analysis reveals that the traffic substitution effect in terms of carbon reduction in urban rail transit is greater in non-resource-based cities, cities with large carbon emissions, and cities with low fiscal pressure. (3) Urban rail transit reduces the carbon dioxide emissions per capita by improving the allocation efficiency of factor resources and further generating technological innovation and structural upgrading effects. (4) Spatial econometric analysis shows that urban rail transit has a significant spatial spillover effect on the reduction in carbon dioxide emissions per capita in neighboring cities. In short, urban rail transit can reduce the carbon dioxide emissions per capita by improving resource allocation and support the attainment of carbon peak and carbon neutrality goals. This effect is greater in large cities where urban rail transit networks have been established. Therefore, cities should actively promote the construction of metro and other rail transit within the scope of urban financial resources and make full use of the carbon reduction and efficiency enhancement functions of urban rail transit. In this way, urban rail transit can become an effective tool for the realization of sustainable development.

Keywords: urban rail transit; urban carbon dioxide emission; traffic substitution effect; resource allocation efficiency; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/9/3901/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/9/3901/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:9:p:3901-:d:1642917

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().