Synergy or siphoning: does the low-carbon city pilot policy enhance green economic efficiency?

Zhixuan Ji and Baoliu Liu ()
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Zhixuan Ji: University of Chinese Academy of Social Sciences
Baoliu Liu: Beijing University of Technology

Climatic Change, 2025, vol. 178, issue 3, No 10, 27 pages

Abstract: Abstract Achieving efficient economic growth in a low-carbon manner is becoming a crucial aspect of sustainable development. Meanwhile, promoting coordinated development to achieve synergistic carbon reduction and efficiency enhancement across cities from a holistic perspective holds significant practical importance. Based on panel data from 282 Chinese cities spanning 2005 to 2019, this study employs staggered difference-in-differences (DID) and spatial Durbin DID models to investigate the direct and spatial spillover effects of China’s low-carbon city pilot (LCCP) policy on green economic efficiency. The findings reveal several key insights: First, the LCCP policy significantly enhances green economic efficiency, primarily through advancements in green transportation, employment, and technology. Second, a notable spatial correlation exits in the green economic efficiency of Chinese cities, with spatial agglomeration generally trending upward over time. Third, local low-carbon city pilots can create a “siphoning effect” through technology and population concentration, inhibiting improvements in neighboring areas and impeding coordinated sustainable development among cities. Therefore, adopting a holistic perspective, establishing coordination mechanisms among cities, and promoting the optimal overall green economic efficiency within the region are essential for effective policy outcomes.

Keywords: Low-carbon city pilot (LCCP); Green economic efficiency; Siphoning effect; Spatial Durbin DID model (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10584-025-03889-5

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