Special economic zones upgrading and carbon emission reduction: firm-level evidence from China

This study investigates how the upgrading policy of Special Economic Zones (SEZs) in China affects corporate carbon emissions. Our findings show that the SEZs upgrading policy significantly reduces firms' carbon emissions, with the effect being particularly pronounced among non-high-tech firms and those located in regions with heightened public environmental concerns. Further analysis reveals that this reduction is driven by increased policy incentives, intensified market competition, and strengthened environmental regulations. These results suggest that the SEZs upgrading policy serves as an effective policy instrument for encouraging corporate carbon emission reductions and advancing green economic development.