Boosting the green total factor energy efficiency in urban China: Does low-carbon city policy matter?

Low-carbon city (LCC) pilot is a strategic policy to deal with global climate change and energy poverty. Using the city-level data from 2006 to 2019, this paper applies a multiple difference-in-difference (DID) analysis to explore the impact of LCC policy on urban green total factor energy efficiency(GTFEE) and its potential mechanism. The results show that the LCC pilot policy can significantly improve urban GTFEE, and the finding remains robust with various tests. Secondly, we shed light on the mechanism of the LCC policy and explore the possible channels through green innovation and structural upgrading to improve the urban GTFEE. Third, the policy effect is affected by different levels of urban economic development, urban development scale, and urban development types. In cities with higher levels of economic development, super-large resource-based cities, the pilot policy has a more significant improvement effect on GTFEE. On the other hand, in the less developed regions, pilot policies will hinder the improvement of GTFEE.