Can Low-Carbon City Pilot Policies Promote Green Total Factor Energy Efficiency in China?

This study evaluates the causal impact and mechanisms of China’s Low-Carbon City Pilot Policy (LCCPP) on urban Green Total Factor Energy Efficiency (GTFEE) by using a multi-period Difference-in-Differences (DID) model with a comprehensive panel dataset of Chinese cities from 2007 to 2022. We also conduct a series of robustness checks, including event studies and Propensity Score Matching with Difference-in-Differences (PSM-DID), to ensure the reliability of our findings. The results show that the LCCPP has a significant and robust positive effect on urban GTFEE. Furthermore, our mechanism analysis reveals that the policy primarily enhances GTFEE through two key channels: promoting green innovation and accelerating industrial structure upgrading. This study provides important policy implications, suggesting that the LCCPP is an effective tool for green development and that policymakers should focus on supporting green technology and industrial transformation to maximize the policy’s benefits.