AUTHOR=Zhang Xinyu , Ding Xiaoyi , Jia Zehui , Guo Xiaoling , Zhang Lin 
  
TITLE=Low carbon transition and green total factor productivity of manufacturing firms: empirical evidence from low-carbon city pilot policy
  
JOURNAL=Frontiers in Environmental Science
  
VOLUME=Volume 14 - 2026
  
YEAR=2026
  
URL=https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2026.1842523
  
DOI=10.3389/fenvs.2026.1842523
  
ISSN=2296-665X
  
ABSTRACT=IntroductionTo advance low‐carbon transformation and sustainable growth, low‐carbon city pilot policy (LCP) was first implemented in China in 2010, and the scope of pilot cities has been gradually expanded in the subsequent years. Manufacturing enterprises, as microscopic subjects of the national economy, are leading force in building a new engine of green growth.MethodsTaking LCP as a quasi‐natural experiment, this study leverages a multi‐temporal difference‐in‐difference model to investigate how this policy affects green total factor productivity (GTFP) in the manufacturing sector and the corresponding potential mechanisms, where the research is grounded in panel data of Chinese manufacturing enterprises listed on the A‐share markets in Shanghai and Shenzhen (2005–2024).ResultsIt is found in this study that LCP exerts a positive effect on manufacturing enterprises' GTFP, with the conclusion holds steady following multiple robustness checks. State-owned and highly polluting manufacturing enterprises experience a more pronounced boost in their GTFP. Through mechanism test, it is demonstrated that the policy drives the improvement of GTFP chiefly via advancing green innovation and increasing green output.DiscussionThese findings offer empirical evidence for the effectiveness of LCP in promoting green growth among manufacturing enterprises, with implications for extending similar policies to other regions and enterprise types.