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Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China

The low-carbon city pilot policy is an environmental regulation aimed at reducing carbon emissions at the municipal level. Previous research mostly focused on evaluating its environmental performance and discovered it could enhance pilot cities’ low-carbon innovation. However, the effects of the low...

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Detalles Bibliográficos
Autor principal: Yang, Ge
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9833526/
https://www.ncbi.nlm.nih.gov/pubmed/36630425
http://dx.doi.org/10.1371/journal.pone.0277879
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author Yang, Ge
author_facet Yang, Ge
author_sort Yang, Ge
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description The low-carbon city pilot policy is an environmental regulation aimed at reducing carbon emissions at the municipal level. Previous research mostly focused on evaluating its environmental performance and discovered it could enhance pilot cities’ low-carbon innovation. However, the effects of the low-carbon city pilot policy on firm-level low-carbon innovation and their economic impact have yet to be investigated. This research uses a sample of Chinese A-share listed firms and the difference-in-difference method to examine the effect of the low-carbon city pilot policy on firms’ low-carbon innovation. The baseline regression showed that the low-carbon city pilot policy could greatly encourage low-carbon innovation among firms in pilot cities. The mechanism analysis demonstrated that this improvement effect is attained by easing these firms’ financing constraints. According to the heterogeneity analysis, we discovered that state-owned firms and firms situated in pilot zones with municipal secretaries who have larger promotion incentives are more susceptible to this policy. Additionally, the research on this policy’s economic impact revealed that, following its adoption, the market value and comparative advantages of the firms in the pilot areas also increased. The findings of this study have implications for the enhancement and national expansion of low-carbon policies adopted at the city level.
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spelling pubmed-98335262023-01-12 Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China Yang, Ge PLoS One Research Article The low-carbon city pilot policy is an environmental regulation aimed at reducing carbon emissions at the municipal level. Previous research mostly focused on evaluating its environmental performance and discovered it could enhance pilot cities’ low-carbon innovation. However, the effects of the low-carbon city pilot policy on firm-level low-carbon innovation and their economic impact have yet to be investigated. This research uses a sample of Chinese A-share listed firms and the difference-in-difference method to examine the effect of the low-carbon city pilot policy on firms’ low-carbon innovation. The baseline regression showed that the low-carbon city pilot policy could greatly encourage low-carbon innovation among firms in pilot cities. The mechanism analysis demonstrated that this improvement effect is attained by easing these firms’ financing constraints. According to the heterogeneity analysis, we discovered that state-owned firms and firms situated in pilot zones with municipal secretaries who have larger promotion incentives are more susceptible to this policy. Additionally, the research on this policy’s economic impact revealed that, following its adoption, the market value and comparative advantages of the firms in the pilot areas also increased. The findings of this study have implications for the enhancement and national expansion of low-carbon policies adopted at the city level. Public Library of Science 2023-01-11 /pmc/articles/PMC9833526/ /pubmed/36630425 http://dx.doi.org/10.1371/journal.pone.0277879 Text en © 2023 Ge Yang https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Yang, Ge
Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China
title Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China
title_full Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China
title_fullStr Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China
title_full_unstemmed Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China
title_short Can the low-carbon city pilot policy promote firms’ low-carbon innovation: Evidence from China
title_sort can the low-carbon city pilot policy promote firms’ low-carbon innovation: evidence from china
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9833526/
https://www.ncbi.nlm.nih.gov/pubmed/36630425
http://dx.doi.org/10.1371/journal.pone.0277879
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