Can low-carbon city pilot policy boost tourism development? Empirical evidence from China

As an environmental regulatory tool in achieving green development, the low-carbon city pilot policy (LCCP) considerably influence tourism enhancement. Using China's 261 prefecture-level cities, this paper empirically delve the implication of LCCP to tourism from two tourism dimensions of tourism revenue and tourism arrivals employing the time-varying DID methodology. Results empirically reveal that the LCCP contributes to boosting tourism development, and after undergoing numerous robustness tests, this finding stands. The "arrivals growth effect" of LCCP is stronger than the "revenue improvement effect." Moreover, the impact of LCCP on domestic tourism is more profound than on inbound tourism. Heterogeneity analyses show the boosting impact is more pronounced in third-tier and above cities and non-resource-based cities. Upon further testing its transmission mechanism, we discover that the LCCP raises tourism revenues and arrival levels through industrial structural upgrading and innovation capacity improvement. The study clarifies the theoretical mechanisms and policy effects of LCCP on tourism development, which is valuable for assessing the tourism effects of LCCP and other environmental regulations and exploring the expanding path of sustainable tourism development.