Towards zero-carbon cities: how does environmental information disclosure impact the risk of carbon locking?

ABSTRACT

Utilizing panel data from 119 cities spanning from 2013 to 2019, the study rigorously investigates the influence of environmental information disclosure (EID) on mitigating the risk of urban carbon lock-in through the application of both two-way fixed effects and spatial econometric models. The findings robustly indicate that EID plays a significant role in facilitating carbon unlocking within cities, a conclusion that remains steadfast even after addressing potential endogeneity issues. Mechanistically, it is revealed that EID can effectively decrease the risk of carbon lock-in by enhancing urbanization levels and reducing energy intensity. Furthermore, the study unveils that the efficacy of EID in curbing urban carbon lock-in risk is also contingent upon factors such as carbon intensity, population size, and environmental quality, highlighting the multifaceted nature of EID's impact on urban carbon management. Specifically, the increase in carbon intensity, the expansion of population size, and the deterioration of environmental quality will reduce the carbon unlocking effect, which may not be conducive to the achievement of the goal of "carbon neutrality" in cities. The spatial effect test found that EID and carbon locking risk are both spatially significant positive autocorrelation, the deepening of local EID can significantly cut the risk of carbon locking in neighboring cities, and the urbanization pathway and energy saving pathway exist both locally and in neighboring places.