Urban Green Technology Innovation: The Spillover Effects of a Low-Carbon City Pilot Program

To combat global warming, the authorities in China have initiated a low-carbon city pilot (LCCP) with the aim of transitioning socioeconomic development from a carbon-intensive to sustainable practices. Green technology innovation (GTI) is a crucial driver for sustainable progress, essential for achieving coordinated economic growth. We use a spatial difference-in-differences model to examine the mechanisms through which LCCP policies influence urban GTI. The results reveal that LCCP policies directly promote GTI within the pilot cities but inhibit it in neighboring cities. The validity of this conclusion persists even following a series of robustness tests. Government intervention and public participation are identified as critical mediating mechanisms through which pilot projects influence urban GTI. The pilot initiatives exhibit a more pronounced impact in fostering GTI in cities characterized by higher administrative levels and larger populations, and they also positively influence GTI in the surrounding regions through demonstration effects. These policies struggle, however, to effectively promote green transformation in resource-based cities. The article offers practical evidence and theoretical backing from a spatial spillover perspective for evaluating LCCP policies and offers policy recommendations for their further implementation.