Does Innovation-driven Policy Optimize Urban-Energy-Consumption Structure? Evidence from National Innovation-driven City Pilot Policies

Abstract The restructuring of energy consumption is vital for fostering green, low-carbon economic, and societal development. Innovation-driven policies, as exemplified by incentives in pilot cities, are crucial in this restructuring. In this study, theoretical analysis is performed to elucidate the impact of innovation-driven policies on the structure of urban-energy consumption. Specifically, a multi-timepoint difference-in-differences model is employed, where national innovation-driven city pilot policies are leveraged in a quasi-natural experiment to systematically assess the impact. The study demonstrates that innovation-driven policies, as showcased by national pilot programs, substantially enhance the structure of urban-energy consumption. Moreover, the impact of this policy is significantly greater in cities with lower administrative tiers, greater geographical challenges, and greater focus on environmental preservation. Tests reveal that innovation-driven policies affect the structure of urban-energy consumption via green innovation and industrial structural optimization. The findings from this study offer valuable policy guidance for optimizing innovation-driven policies to benefit the energy-consumption structure, thus fostering sustainable development within the Chinese economy.