Examining the carbon reduction effect of renewable resource utilization: based on national “urban mining” demonstration base

Purpose Given the inevitable transition to renewable resource utilization and the urgent need to reduce carbon emissions, this study conducted quasi natural experiments to assess the impact of renewable resource utilization on carbon emissions based on the national “urban mining” demonstration bases (NUMDB). Design/methodology/approach This study uses panel data from 275 prefecture-level cities in China from 2006 to 2019. The paper selects NUMDB as the proxy variable and conducts a quasi-natural experiment using a multi-period differences-in-differences model. We examine the impact of NUMDB on reducing carbon emissions, and then deeply explore its mechanism and spatial spillover effect. Findings This study found that: (1) the construction of NUMDB can significantly decrease the carbon emission in the host cities; (2) NUMDB’s construction has more significantly reduced the carbon emission in regions with higher levels of circular economy development, green technology innovation, regional environmental pollution, digital economy development and financial development; (3) by means of green technology innovation, optimized energy structure, and high-quality talent aggregation, NUMDB reduces urban carbon emissions; (4) NUMDB construction positively affects the carbon reduction efficiency of neighboring regions. Research limitations/implications We propose corresponding policy suggestions to further promote the carbon emission reduction effect of NUMDB and develop the renewable resources industry in China based on the research findings. Practical implications The contributions of this paper are as follows. Our study contributes to expanding the research scope on the environmental impact of the renewable resource industry, as there are few quantitative studies in this area. Social implications We further consider the spatial heterogeneity of policies and analyze the carbon reduction effect of the NUMDB from the city level, which is beneficial to exploring more targeted and operable carbon reduction paths. Originality/value This study on identifying the causal relationship between renewable resource utilization and carbon emission reduction helps to explore the sustainable development path of renewable resource more comprehensively. Meanwhile, this paper provides a reference for other countries to improve the utilization of renewable resource and effectively reduce carbon emissions.