New Energy Demonstration City Construction and Corporate Energy Consumption: Evidence from China’s A-Share Listed Companies

This study examines the causal impact of China’s New Energy Demonstration City construction policy on corporate energy consumption. The results demonstrate that this policy effectively reduces corporate energy consumption. The policy significantly decreases the consumption of coal, natural gas, and diesel. Although the policy significantly reduces energy consumption in both local state-owned enterprises (SOEs) and non-SOEs, its effect does not show statistically significant variation across different types of controlling shareholders. The energy-saving effect is particularly pronounced in the following industries: Manufacturing, Electricity, Heat, Gas, and Water Production & Supply, Wholesale & Retail Trade, Information Technology Services, Leasing & Business Services, and Water Conservancy, Environment, and Public Infrastructure Management. The policy operates through multiple channels: internal mechanisms including direct innovation effect, accelerated green M&As effect as well as digital empowerment effect, and external moderators including marketization level and green finance environment. The findings yield important insights for scholars, policymakers and corporate stakeholders.