Impact of Low-Carbon City Policy on Enterprise Investment Efficiency: Based on the Heterogeneity of Chinese Urban Culture

Based on panel data of Chinese listed companies, this paper estimates the impact of low-carbon city policy (LCCP) on enterprise investment efficiency (EIE) by the heterogeneous timing difference in differences (HTDID) method and examines the heterogeneous effect of urban culture on the impact. The results show that LCCP improves EIE, and the research conclusion passes the robustness tests. Mechanism analysis reveals that LCCP mainly acts on EIE along two paths: promoting enterprise technological innovation and easing financing constraint. But the LCCP does not have a significant effect on resource allocation. On urban culture heterogeneity, the ecological wisdoms of green urban culture and Confucian culture, such as benevolence to all beings and the harmony between man and nature, help to enhance the promoting effect of LCCP on EIE. From the perspectives of the synergistic development between formal and informal institutions and of urban cultural governance, this research provides important reference and data support to EIE improvement.