Coordinated governance of energy transition policy and pollution and carbon reduction: A quasi-natural experiment based on new energy demonstration city policy

Creating a cleaner, more sustainable, low-carbon energy system is the essential prerequisite for the coordinated governance of pollution reduction and carbon reduction (CGPRCR). This paper focuses on the impact of the pilot policy of the new energy demonstration city on CGPRCR. Based on the research purpose, this paper takes the Whole Process Governance Theory as the theoretical foundation, and employs panel data of 280 prefecture-level cities from 2011 to 2020. The transmission mechanism of new energy demonstration city policy aims at advancing CGPRCR is analyzed by using the DID model. The impact of city heterogeneity on policy effects is examined from the perspective of multidimensional heterogeneity. The findings indicate that: (1) The implementation of the new energy demonstration city policy can greatly contribute to the CGPRCR. This finding remains valid even after conducting a series of robustness tests, such as PSM-DID and placebo test; (2) The mechanism test demonstrates that the policy can optimize the industrial structure, encourage the development of green technologies, and strengthen environmental regulations, all of which can empower the entire governance process and indirectly support the CGPRCR; (3) The policy has a more noticeable impact on the CGPRCR in eastern cities, large cities, and cities with better innovation foundations. • The new energy demonstration city policy can directly promote the coordinated governance of pollution reduction and carbon reduction. • “Source Prevention, Control-Process, and Terminal Treatment” is an important transmission mechanism for the NEDC policy to promote the CGPRCR. • The NEDC policy has significant heterogeneous impact for the CGPRCR.