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Does Low-Carbon City Transition Empower Tourism Economy? Evidence from China

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  • Qi Yue

    (School of Finance, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Yang Zhang

    (School of Management Science and Engineering, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Yinchao Liao

    (School of Finance, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Lei Liao

    (School of Finance, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Juntai Yu

    (SWUFE-UD Institute of Data Science, Southwestern University of Finance and Economics, Chengdu 611130, China)

Abstract

The tourism economy is inseparably linked to the ecological environment, serving as a “green engine” in the promotion of the low-carbon transition of cities and the realization of high-quality economic development. Taking the implementation of a low-carbon city pilot (LCCP) policy as a quasinatural experiment, we assess the impact of a low-carbon transition on the urban tourism economy using a time-varying difference-in-differences identification strategy based on the panel data of 279 Chinese cities covering the period from 2007 to 2019. The results indicate that LCCPs have a favorable effect on the development of the tourism economy. Compared to non-pilot cities, the implementation of LCCPs has led to an average increase of approximately CNY 1918 in tourism receipts per inhabitant in pilot cities. The mechanism analysis reveals that the implementation of LCCPs promotes the tourism economy by energizing the tourism market and accumulating ecological wealth. Specifically, LCCPs have not only optimized the supply of tourism products and related services but have also improved the competitiveness of regional tourism by energizing the tourism market. Meanwhile, LCCPs have improved the ecological environment and enriched natural resources through the accumulation of urban ecological wealth, thereby enhancing urban tourism attractiveness and environmental carrying capacity. The heterogeneity results show that the impact of LCCPs on the tourism economy varies significantly by tourism resource endowment, border-crossing status, and ecological landscape division. Our findings provide empirical evidence that can be used to promote the tourism economy in other countries and facilitate the industrial transformation during the process of a low-carbon transition.

Suggested Citation

  • Qi Yue & Yang Zhang & Yinchao Liao & Lei Liao & Juntai Yu, 2025. "Does Low-Carbon City Transition Empower Tourism Economy? Evidence from China," Sustainability, MDPI, vol. 17(3), pages 1-25, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1238-:d:1583116
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    References listed on IDEAS

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