How does national development zone policy affect carbon emissions in China? New evidence from a quasi-natural experiment.

The expansion of China's development zones has made great contributions to economic development, as well as provided practical guidance for other developing countries to implement development zone policies. However, in the context of global advocacy of low carbon, literature about how the development zone policy affect carbon emissions is poor, especially in China at the urban level. Therefore, this study takes China's development zone policy as a quasi-natural experiment, using the panel data of 285 cities in China from 2003 to 2020, and adopting the DID model to analyze its impact on carbon emissions. After a series of robustness tests including placebo test, dynamic test (all independent variables are lagged by one period), endogeneity test, and parallel trend test, the results are basically robust. The findings show that the development zone policy indeed significantly reduces carbon emissions. In addition, we find that cities with higher resource endowments, cities in the eastern and central regions, and other larger cities across the country have better carbon emissions reduction effects. To a certain extent, the research in this paper fills the gap of theoretical research on carbon emissions in terms of the development zone policy, and provides some practical basis for future research in the field of carbon emissions.