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Does the Urban Agglomeration Policy Reduce Energy Intensity? Evidence from China
Rui Ding1,2,3, Tao Zhou1,2,3, Jian Yin4,5
1College of Big Data Application and Economics (Guiyang College of Big Data Finance), Guizhou University of Finance and Economics, Guiyang 550025, China.
China's urban agglomeration policy significantly reduces energy intensity (EI), especially in "Edge" cities, by enhancing green innovation. This research offers insights for urban planning and sustainable technology development.
Area of Science:
- Environmental Economics
- Urban Studies
- Energy Policy
Background:
- Rapid economic growth and urbanization in China have led to increased energy consumption and environmental degradation.
- China has set ambitious goals for carbon peaking and carbon neutrality by 2060.
- The impact of urban agglomeration policies (UAP) on energy intensity (EI) remains under-researched compared to general urbanization effects.
Purpose of the Study:
- To investigate the effect of urban agglomeration policy (UAP) on energy intensity (EI) in China.
- To analyze the heterogeneous impacts of UAP across different city types (core vs. edge).
- To explore the mediating role of green innovation capability in the relationship between UAP and EI.
Main Methods:
- Difference-In-Differences (DID) model applied to 279 prefecture-level cities.
- Mediating effect model to analyze the mechanism of influence.
- Robustness checks including placebo tests, PSM-DID, counterfactual analysis, and instrumental variable method.
Main Results:
- Urban agglomeration policy (UAP) demonstrates a significant effect in reducing energy intensity (EI).
- The effectiveness of UAP varies with urban heterogeneity; policies in 'Edge' cities are more effective than in 'Core' cities.
- Green innovation capability acts as a significant intermediary variable through which UAP influences EI.
Conclusions:
- Urban agglomeration policies are effective tools for reducing energy intensity in China.
- Tailoring urban agglomeration strategies to city characteristics, particularly focusing on 'Edge' cities, can enhance policy impact.
- Promoting green innovation is crucial for maximizing the environmental benefits of urban agglomeration policies.
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