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Does climate policy exacerbate spatial development inequality? Quasi-experimental evidence from China

Bibliographic Data

ID21229020
AuthorsXiaoke Zhu (0000-0002-3543-9668, University of Göttingen, corresponding author), Weigang Liu (0000-0002-7351-4657, Hochschule für Angewandte Wissenschaften Kiel), Jian Liu (0000-0002-1447-0973, Leibniz Institute of Agricultural Development in Transition Economies)
Year2025
Volume120
Pages106166
Publication date2025-02-01
Open AccessYes
TypeARTICLE
VenueSustainable Cities and Society (JOURNAL)
Journal identifiersISSN: 2210-6707 • E-ISSN: 2210-6715
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.scs.2025.106166
OpenAlexW4406754429
LanguageEN
References cited52

The LCCPI is a win-win climate policy. • The LCCPI leads to a 4.4 % decline in spatial development inequality. • The green innovation gap and factor allocation are the underlying impact channels. • The LCCPI is more effective for resource-dependent and high-marketization cities. This study aims to examine the causal relationship between climate policy and spatial development inequality within cities. To this end, we leverage the temporal and spatial variations in the implementation of the low-carbon city pilot initiative (LCCPI) to perform a staggered difference-in-difference (DID) estimation. Our estimated results demonstrate that the LCCPI is associated with an approximate 4.4 % reduction in the Gini coefficient for nighttime light intensity. Our findings are robust to alternative measures and different specifications. Further mechanism analyses reveal that the LCCPI operates by narrowing the green innovation gap and improving the factor allocation. Notably, we observe a more pronounced decrease in spatial development inequality in resource-dependent and high-marketization cities

China · Development economics · Economic geography · Economics · Geography · Inequality · Spatial inequality · Energy, Environment, Economic Growth · Mathematics · Regional Economics and Spatial Analysis · Urban Transport and Accessibility

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