Asian Journal of Economics, Business and Accounting

In response to global climate challenges and the pursuit of sustainable development, low-carbon city pilots (LCCP) have become a critical instrument for China to achieve its carbon peaking and neutrality goals. This study empirically investigates the impact of the LCCP policy on urban green innovation and its underlying mechanisms from the novel perspective of ecological attention. Utilizing a multi-period difference-in-differences (DID) model and panel data from 283 prefecture-level cities in China from 2007 to 2017, we find robust evidence that the LCCP policy significantly promotes green innovation, measured by green patent applications per 10,000 residents. The results withstand a series of robustness checks, including parallel trends validation, alternative explanatory variable specifications, sample period adjustments, and exclusion of major municipalities. Furthermore, heterogeneity analyses reveal that the policy effects are more pronounced in eastern coastal cities, areas with higher financial development, and cities with lower resource dependence. Mechanism analysis reveals that ecological attention serves as a crucial transmission channel. Specifically, the policy elevates both governmental ecological attention, measured by the frequency of environmental keywords in the work reports, and public ecological attention, captured by the Baidu search index. Notably, public ecological attention demonstrates a stronger driving effect on green innovation compared to its governmental counterpart, suggesting that bottom-up engagement plays a vital role in fostering green technological advances. This research provides theoretical and empirical support for evaluating city-level environmental policies and offers valuable insights for policymakers. We propose expanding the coverage of low-carbon pilot programs, tailoring policy design to account for regional heterogeneity, and strengthening policy enforcement to enhance public participation. These findings underscore the importance of integrating ecological attention into environmental governance frameworks to accelerate the transition toward greener and more resilient urban development.