A Study on the Effect of Innovation-Driven Policies on Industrial Pollution Reduction: Evidence from 276 Cities in China

Abstract

The societal effects of industrial pollution have spurred heated debates, but more research into the influence and internal mechanism of innovative pilot city policies (IPCPs) on industrial emissions is needed. Using panel data from 276 Chinese cities between 2004 and 2018, the study employs a multi-period difference-in-differences model to explore the effects and mechanisms of pilot policies on industrial SO2 emissions, with a specific focus on how they can be mitigated by innovative techniques. The results indicate that (1) the Chinese innovative pilot city policies (CIPCPs) significantly reduced emissions in urban areas; (2) the concentration of talent, innovation policy, venture capital, and technology plays a pivotal role; and (3) the SO2 reduction effects are more pronounced in larger cities, such as super-large, mega-, and first-tier cities in the southeast, and in cities with a high market potential. This study provides empirical evidence to support the promotion of sustainable economic and social development, the resolution of environmental pollution problems, and the enhancement of public health.