Achieving co-benefits by implementing the low-carbon city pilot policy in China: Effectiveness and efficiency

Abstract

Cities are the main emitters of CO2 and air pollutants, and the main drivers of addressing climate change. The implementation of the low-carbon city pilot (LCCP) policy has achieved carbon emission reduction, but further research is needed to determine whether the synergistic reduction of CO2 and PM2.5 can be effectively implemented, and the efficiency of the synergistic reduction can be improved. Panel data belonging to 279 Chinese cities are selected. We assess the effectiveness and efficiency of the implementation of the LCCP policy to achieve co-benefits of CO2 and PM2.5 emission reduction, using the time-varying difference-in-differences model. We evaluate the synergistic emission reduction efficiency and its decomposition by the super-efficiency slack-based measure model with CO2 and PM2.5 as undesirable outputs. The results show that the LCCP policy reduces 3.55% of CO2 and 2.18% of PM2.5 respectively, and enhances the effectiveness of coordinated emission reduction governance. The LCCP policy also improves the synergistic emission reduction efficiency, moves the input–output model towards the “optimal production frontier”. We form policy recommendations for encouraging technological innovation and optimal resource allocation to achieve “net zero emissions”. Most importantly, policymakers should incorporate synergistic emission reduction efficiency into the process of policy evaluation, and establish a low-carbon economic development model tailored to local conditions.