Does the Low-Carbon City Pilot Promote Household Energy Transition in China?

How to promote the household energy transition (HET) has become an important response to extreme climate change. Our paper examines whether a low-carbon city pilot (LCCP) can promote HET. We empirically use the Staggered Difference-in-Differences (DID) model to explore its mechanisms. The results indicate that the LCCP can substantially promote HET. The primary driving mechanism underlying this transition is enhanced governmental emphasis on carbon emission reduction and elevated public environmental awareness. However, the increased local expenditure on energy conservation and environmental protection does not serve as an effective mechanism. The heterogeneity analysis reveals that the LCCP has the most pronounced impact on HET among high-income groups, whereas the effect on low-income groups is relatively minor. Furthermore, the LCCP significantly promotes HET in the eastern region and urban areas, while the central region tends to inhibit it, and the western region and rural areas show no significant effect. The heterogeneity analysis further reveals that the LCCP is effective in Municipalities and Strong-Capital Provinces, where centralized governance and strong political incentives enhance policy implementation. In contrast, the policy shows limited or even negative effects in Non-Municipal Provinces and Non-Strong-Capital Provinces. We provide valuable policy insights for governments to bolster the LCCP implementation to promote HET and achieve carbon neutrality at an earlier stage.