Spatial spillover effect of low-carbon transition on employment—an empirical study based on 285 cities in China

Hui Hou, Yuanyuan Wang and Minglang Zhang

Applied Economics Letters, 2025, vol. 32, issue 8, 1151-1156

Abstract: Can China’s low-carbon transformation promote employment while realizing emission reduction? In this study, the implementation of low-carbon city pilot policy is considered a ‘quasi-natural experiment’, and the spatial difference-in-difference method is utilized to examine the spatial spillover effect of LCCP on urban employment over the period 2005–2020 in 285 Chinese cities. The results show that the spatial distribution of employment level in China shows a significantly positive autocorrelation; while realizing the reduction of carbon emission, LCCP significantly boosts both local employment and employment in surrounding areas. This paper presents a theoretical and empirical basis for low-carbon transition to achieve a double dividend of emission reduction and employment.

Date: 2025
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DOI: 10.1080/13504851.2024.2302869

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