Innovative urban design for low‐carbon sustainable development: Evidence from China's innovative city pilots

Abstract As a sustainable urban design, innovative city pilots offer a way for developing countries to achieve carbon reduction goals. To date, a total of 78 innovative cities have been established in China. In this context, this study examines whether innovative city construction can contribute to meet carbon mitigation targets. On the basis of expounding the mechanism of innovative city pilots on carbon emissions, the multiperiod difference in differences method is applied to investigate the average treatment effect and the mediating effect model is used to validate the transmission mechanism. The results show that innovative city pilots significantly reduce carbon emissions. Compared to nonpilot areas, the pilot areas reduce carbon emissions by 15%. Specifically, technological innovation is the primary channels for innovative city pilots to influence carbon emissions but industrial structure effect does not work. Furthermore, the superimposed effect analysis indicates that the carbon reduction effect of the city as both innovative city pilot and other pilot (low‐carbon pilot, broadband China pilot, intellectual property pilot) is greater than that of a single pilot. Results of heterogeneity analysis indicate that carbon mitigation efforts are more effective in central and western cities, nonmega cities, resource‐based cities and cities with high human capital and financial development. In addition, the pilot policy has a positive spatial spillover effects on carbon reduction in cities with geographical proximity and economic ties. These results can contribute to precisely assess the environment benefits of promoting innovative city pilot projects and provide a decision making reference for fighting climate change in the era of knowledge economy.