Impact of pilot environmental policy on urban eco-innovation

Eco-innovation is an important driving force of high-quality economic development, which can promote economic growth while also ensuring ecological benefits. However, the characteristics of public goods, as well as the dual positive externalities of eco-innovation, lead to its internal reliance on government. Using China's low-carbon city pilot policy as an example, this paper empirically examines the impact of the pilot environmental policy on urban eco-innovation. The results demonstrate that the pilot policies promote urban eco-innovation and a progressive pilot policy promotion model presents an 'experience accumulation effect' in which the effect of the second batch of pilot policies is significantly better than that of the first batch. Dynamic analysis indicates that the eco-innovation effect of the first batch of pilot policies exerts a policy lag. Specifically, the impact of pilot policies on the number of urban green invention patent application lags by approximately 2 years, whereas the impact on the number of patent applications regarding green utility models exhibit a longer lag time. Mediating mechanism analysis reveals that the pilot policy can promote eco-innovation by promoting the agglomeration of innovation factors, including investment and human capital. This paper confirms the eco-innovation effects of a pilot environmental policy model with Chinese characteristics, with significant theoretical implications. The conclusion also offers practical advice to other countries on how to implement progressive environmental governance reforms.