The Impact of China’s National Sustainable Development Experimental Zone Policy on Energy Transition

Abstract

Energy transition plays a crucial role in supporting sustainable economic growth and the reduction in carbon emissions. In fact, China implemented the national sustainable development experimental zone policy to achieve sustainable development goals, including an energy transition. This paper divided the energy transition dimension into energy consumption and carbon dioxide emissions based on the perspectives of energy input and output. Furthermore, using panel data for 214 cities at the prefecture level in China from 2006 to 2019, the study measured the impact of the national sustainable development experimental zone policy on energy transitions by employing a difference-in-difference (DID) model and an intermediary effect model. The results showed that the national sustainable development experimental zone policy reduced energy consumption and carbon dioxide emissions and accelerated energy transition. The conclusions still held after a series of robustness tests. Additionally, the results of the heterogeneity analysis of different experimental zone types indicated that, compared with prefecture-level experimental zones, county experimental zones play a more obvious role in reducing energy consumption and carbon dioxide emissions. In addition, the results of the heterogeneity analysis of the urban geographical location showed that the national sustainable development experimental zone policy had different negative effects on urban energy consumption and carbon dioxide emissions in different regions, and the impact of policy on energy transition was experienced, in decreasing order, by the western, central, and eastern regions. The results of the mechanism verification indicated that the national sustainable development experimental zone policy can affect energy consumption and carbon dioxide emissions via technological progress and upgrading industrial structure, which had a relatively high aggregation order in the variables deployed.