The Role of Government Innovation Support in the Process of Urban Green Sustainable Development: A Spatial Difference-in-Difference Analysis Based on China’s Innovative City Pilot Policy

Abstract

The role of government support in sustainable urban development has always been a research topic of scholars, but research focusing on the relationship between government innovation support and urban green sustainable development is still relatively rare. This article uses China's innovative city pilot policy (ICPP) to represent the innovation support provided by the government and address the interaction mechanism and the spatial spillover effect of China's innovative city pilot policy (ICPP), green technology innovation (GTI), and green sustainable development performance (GSDP) with the support of the mediating effect model and the spatial econometric model. Based on panel data of 24 cities in the Yangtze River Delta urban agglomeration from 2001 to 2020, this paper establishes an evaluation index system of green sustainable development performance (GSDP), measuring with the SBM directional distance function based on the undesired output. This paper adopts the spatial difference-in-difference model (SDID) to study the impact mechanism of the ICPP on the GSDP in the Yangtze River Delta. The results show that (i) there is a positive spatial spillover effect of GSDP in the urban agglomeration of the Yangtze River Delta urban agglomeration; (ii) ICPP has a significantly positive effect on GSDP, as verified by several robustness checks; (iii) green technology innovation plays a partial mediating effect in the relationship of the ICPP and GSDP.