New‑type urbanization construction, shift-share of employment, and CO2 emissions: evidence from China

Abstract

Providing diversified jobs for workers and achieving green development are important goals of the new-type urbanization construction (NTUC) in China. We constructed a difference-in-difference model to investigate the effect of the NTUC on the shift-share of employment (SSE), using panel data of 272 Chinese prefecture-level cities from 2005 to 2019. The relationship between the SSE and CO₂ emissions was explored. The results show that the NTUC effectively promotes the SSE and exhibits the significant regional and industry heterogeneity. In addition, the SSE under the NTUC pilot policy can effectively reduce CO₂ emissions and presents the obvious regional and industrial differences. Promoting the industrial structure advancement and improving public services and digital levels can enhance the inhibitory effect of the SSE on CO₂ emissions. Meanwhile, the SSE has an inhibitory effect on CO₂ emissions in local regions but promotes the CO₂ emissions in the neighboring regions. Finally, these findings provide an important decision-making reference for restructure employment and reduce CO₂ emissions during the period of urban transformation and development.

Keywords: CO2 emissions Difference-in-difference model; China; Heterogeneity; New-type urbanization construction; Shift-share of employment; Spatial overflow.