Achieving economic and environmental sustainability through local low-carbon governance: evidence from panel data of Chinese cities

The integration of economic growth and environmental sustainability represents a critical component in local governments' implementation of Sustainable Development Goals (SDGs). Based on panel data from 276 cities in China from 2005 to 2019, this study examines the environmental and economic impacts of low-carbon governance, specifically focusing on carbon mitigation, air pollution reduction, green infrastructure promotion, and economic growth. The study extends to potential mechanisms and differential performance across heterogeneous characteristics of cities. Empirical results demonstrate that enhancing governmental attention to low-carbon governance significantly promotes the synergistic advancement of economic development and environmental protection. Through mechanism analysis, technological innovation and carbon intensity reduction are two primary channels for achieving these co-benefits, while industrial transformation shows no positive contribution. The co-benefits exhibit variability across different regions and city classifications. In particular, more pronounced effects are noted in the eastern and central regions, cities characterized by moderate population density, and those not reliant on resource extraction. These findings underscore the importance of strengthening local low-carbon governance, promoting technological innovation, and implementing differentiated policies aligned with local characteristics.