Answers are grounded in this paper and cite their sources.
China tests sustainability policies, from low-carbon and sponge cities to new-energy-vehicle promotion, in city pilot programmes, and their effects are usually estimated one programme at a time with staggered difference-in-differences (DID) designs. The programmes, however, overlap. Of 297 cities, 169 hosted two or more of ten national programmes by 2022, and 75–95% of each programme’s treated city-years overlapped with another. Monte Carlo simulations calibrated to city PM2.5, with known effects for every programme, show that this overlap contaminates DID evaluations. When each co-located programme is as effective as the focal one, two-way fixed effects, event-study and heterogeneity-robust estimators overstate the focal effect by a median 78–139%. A programme with no effect is found significant in 11–22% of simulated evaluations when co-located effects are small (0.6%), and in 71–100% in a stress test that sets each to the median of three verifiable published estimates (−3.45%). Adding dummies for the other programmes, the usual robustness check, reverses the bias, and pretrend tests rarely detect the problem. Because the contamination is a weighted sum of the other programmes’ effects, with weights fixed by the treatment pattern, these weights can be computed before outcome data are examined; we provide code and a checklist for evaluations of sustainability policies.
No takes yet. Share an insight, caveat, or question.
Chao et al. (2026) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: