Can Demand-Side Policies Effectively Reduce Residential Carbon Emissions? Evidence from China’s Carbon Generalized System of Preferences (CGSP)

The carbon emissions generated by energy consumption on the demand-side accounting for approximately 85% of the total global carbon emissions, which is essential in addressing global climate change. To achieve carbon reduction on the demand-side, the Carbon Generalized System of Preferences (CGSP) was proposed to utilize market mechanisms to encourage voluntary participation by residents in carbon reduction. This paper uses panel data from 2010 to 2020 to explore the effectiveness of the CGSP in reducing urban residents’ carbon emissions under different scenarios based on the difference-in-differences (DID) method. The results indicate that: (1) The CGSP in pilot cities has a significant carbon reduction effect, mainly relying on reducing electricity consumption, whereas spontaneously initiated cities have no significant effect. (2) The carbon reduction effect of residents in pilot cities show a positive and significant coorelation with the population agglomeration degree, urban scale and economic volume, but no significant relationship with residents’ income and industrial structure. These findings provide an important basis for the promotion and further development of CGSP.