Institutional openness and green low-carbon transition ——empirical evidence from China

Abstract

As the global pursuit of the “dual carbon” goals continues to accelerate, the realization of carbon emission reduction and green transformation through institutional innovation has emerged as a critical scholarly and policy concern. Based on city-level data from 283 Chinese cities between 2012 and 2023, this study systematically examines the impact of institutional openness on carbon emission reduction and urban green transition, and conducts empirical tests on the underlying mechanisms. The findings reveal that institutional openness can be regarded as a significant catalyst for carbon reduction. Disaggregated analyses indicate that the transformation of government functions exhibiting the most pronounced effect. Mechanistic investigations suggest that institutional openness can foster green low-carbon transformation through multiple pathways, including the promotion of emerging industries, the elevation of intelligent manufacturing, the stimulation of green patent innovation, and the enhancement of green total factor productivity. Moreover, the carbon mitigation effects are found to be more salient in eastern China, resource-based cities, and cities hosting data trading platforms. Further evidence suggests that institutional openness not only significantly curtails carbon emissions, but also exerts a positive influence on the source control of major industrial pollutants such as wastewater and particulate matter. This study provides both a theoretical underpinning and policy reference for the coordinated advancement of institutional openness and green transformation in China and internationally.