Energy-saving targets and carbon neutrality: A perspective on carbon emissions and carbon substitution in 288 Chinese cities.

ABSTRACT

Environmental protection is a shared task among nations. In pursuit of its commitment to achieve carbon neutrality by 2060, China has implemented more robust energy-saving targets. This study utilizes panel data from 288 Chinese cities spanning from 2006 to 2020 to examine the policy effects of energy-saving targets on carbon neutrality. The findings reveal that (1) energy-saving targets positively impact carbon substitution, resulting in reduced carbon emissions and facilitating the progress towards carbon neutrality through three primary channels energy governance, energy production, and energy consumption. (2) The influence of energy-saving targets on carbon neutrality exhibits a significant spatial spillover effect, driven primarily by the reduction in carbon emissions, although the spatial spillover effect of carbon substitution is relatively limited. The collaboration between the government and enterprises plays a crucial role in achieving carbon neutrality, while the engagement of the general public is yet to be fully realized. (3) However, the inadequacy of enhancing carbon neutrality through energy-saving targets lies in the compulsory emissions reduction behavior at the expense of sacrificing some economic benefits in cities that overachieve energy-saving targets. This undermines the coordinated development of ecology and economy. Therefore, it is recommended to establish a policy implementation monitoring system to ensure the scientific basis of policy objectives, enhance the level of green technology innovation, accelerate the digital transformation of enterprises, and establish a synergistic mechanism that involves multiple stakeholders.