Discussion on Economic Benefit Analysis and Sustainable Development Path in Low-Carbon City Development

Abstract

The construction of low-carbon cities has emerged as an important strategy to realise the harmonious development of urban economy and climate change mitigation. Cities account for about 70% of global energy-related carbon dioxide emissions. The economics of urban decarbonisation – the costs of transition, the benefits of energy efficiency, green jobs, health co-benefits and carbon market revenues – is therefore of critical policy relevance. In this article, we explore three complimentary ways in which low-carbon city development might bring economic benefits: (i) direct cost savings and employment benefits; (ii) carbon market and green finance methods; and (iii) comparative development trajectories between leading jurisdictions. Using data from the IEA, IRENA, OECD and the EU Emissions Trading System, and case studies from Copenhagen, China’s Low-Carbon City Pilot programme and the European Union, the paper makes the case that the economic case for low-carbon urbanism is solid and is getting stronger if policy frameworks can be crafted to align financial incentives with decarbonisation objectives. The report concludes with policy recommendations regarding the design of carbon pricing, the mobilisation of green funding and the management of an equitable transition.