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Climate policy in emerging economies: Evidence from China’s Low-Carbon City Pilot

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  • Zhang, Haibo
  • Di Maria, Corrado
  • Ghezelayagh, Bahar
  • Shan, Yuli

Abstract

In this paper, we assess the effectiveness of early climate policy in emerging economies by causally evaluating the impact of China’s Low-carbon City Pilot (LCCP) on city-level per-capita CO2 emissions and CO2 intensity of GDP over the period 2003–2017. The idiosyncrasies of the policy design pose significant challenges for causal identification, which we overcome within a synthetic control framework. Contrary to previous contributions, our results suggest that the LCCP had no significant impact on either carbon emissions or intensity. The main takeaway of our empirical investigation is that even in emerging economies, effective environmental policy requires transparent, quantifiable targets, and credible enforcement.

Suggested Citation

  • Zhang, Haibo & Di Maria, Corrado & Ghezelayagh, Bahar & Shan, Yuli, 2024. "Climate policy in emerging economies: Evidence from China’s Low-Carbon City Pilot," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:jeeman:v:124:y:2024:i:c:s0095069624000172
    DOI: 10.1016/j.jeem.2024.102943
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    References listed on IDEAS

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    Cited by:

    1. Haonan Chen & Xiaoning Cui & Yu Shi & Zhi Li & Yali Liu, 2024. "Impact of Policy Intensity on Carbon Emission Reductions: Based on the Perspective of China’s Low-Carbon Policy," Sustainability, MDPI, vol. 16(18), pages 1-20, September.
    2. Chong Zhuo & Yaobin Liu & Ling Dai & Yuyang Deng, 2024. "Cultural, Economic, or Transport Link: Does Carbon Emissions Trading Promote “Good Neighbor” Carbon Emission Reduction?," Land, MDPI, vol. 13(11), pages 1-19, October.

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    More about this item

    Keywords

    Climate policy; China; Causal identification; Carbon emissions; Carbon intensity;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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