Can energy saving and emission reduction demonstration city selection actually contribute to pollution abatement in China?

The National Comprehensive Demonstration City Selection of Energy Saving and Emission Reduction Fiscal Policy(ESER demonstration city selection) is an important assessment-and-commendation policy to promote in-depth advancement of the construction of ecological civilization in China. Accurate evaluation of the environmental effect of the policy is of great significance to its promotion. A difference-in-differences (DID) model is used to explore the role of the ESER demonstration city policy in urban environmental governance. The results of empirical tests show that the policy has significantly reduced fine particulate matter (PM2.5), industrial dust, sulfur dioxide (SO2), and wastewater emissions by 39.1%, 61%, 18.3%, and 7.4%, respectively. The results of the multi-stage DID model show that the emission reduction effect of this policy increases significantly in the short term but decreases gradually in the long term. The results of the mediation effect model show that the emission reduction effect is driven mainly by increasing innovation capacity and reducing energy intensity; the effect is also more significant in cities on a larger scale, with higher levels of fiscal expenditure and financial development, more abundant human capital and higher levels of economic development. This study provides empirical support for China to further promote the assessment-and-commendation environmental policies represented by the ESER demonstration city policy nationwide. (C) 2021 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.

Automated summary

The selection of National Comprehensive Demonstration City of Energy Saving and Emission Reduction Fiscal Policy is an important policy that significantly reduces urban pollutant emissions. The effect of the policy increases in the short term but decreases gradually in the long term, mainly driven by innovation and reducing energy intensity, with more significant effects in cities with higher levels of economic development.