Impact of legal commitments on carbon intensity: A multi-country perspective.

Abstract

High carbon intensity (CI) contributes to climate change, hindering the achievement of the United Nations' Sustainable Development Goal 13 (SDG13). National legal commitments (LC) to reduce carbon emissions can mitigate this obstacle. This study identifies 32 countries with LC to carbon reduction as the treatment group and countries with commitments at other levels (e.g., policy statements) as the control group. Using panel data from 143 countries between 2006 and 2022, the study employs a Difference-in-Differences with multiple time periods (DID-MTP) model to examine the impact of LC on CI. The results indicate that countries with LC achieved a significant 7.3% reduction in CI, a finding that remains consistent across various robustness tests. Furthermore, LC contribute to the reduction of CI by lowering energy intensity, promoting technological innovation, and enhancing the industrial structure upgrading. The impact of LC on CI shows substantial heterogeneity across countries, operating through multiple mechanisms that reflect differentiated pathways of influence. Lastly, LC have also proven effective in reducing the emissions of other pollutants, such as CO2, CH4, and N2O. This research provides empirical support for global climate governance and offers valuable insights for nations in formulating and implementing effective carbon reduction policies.