The Impact of the Construction of Pilot Free Trade Zones on Reducing Carbon Emissions in Resource-based Cities

As the world accelerates its response to climate change, resource-based cities that have long depended on resource development face a particularly difficult task in cutting carbon emissions. This study focuses on China’s Pilot Free Trade Zones (FTZs), a major institutional innovation, and takes a closer look at how they affect the environment of resource-based cities. Using a difference-in-differences (DID) model, the study analyzes panel data on carbon emissions from resource-based cities before and after FTZs establishment. The results show that establishing FTZs significantly reduce carbon emissions in these cities. This carbon-reduction effect works through three channels: lowering energy consumption intensity, increasing foreign direct investment, and enhancing green technological innovation. The effect is more pronounced in the central and western regions and in declining cities. These findings offer useful implications for promoting coordinated regional development and designing differentiated policies. They also highlight the critical role of institutional innovation in achieving the “dual carbon” goals.