New energy demonstration cities policy and urban green transformation

Peng Wang and Donghai Li

Finance Research Letters, 2025, vol. 79, issue C

Abstract: This study examines the effectiveness of China's New Energy Demonstration City policy in advancing urban green transformation. Using panel data from 286 prefecture-level cities spanning 2007–2021, we apply a difference-in-differences approach to assess the policy's impact on green total factor productivity. Our analysis identifies significant positive effects driven by two key mechanisms: foreign direct investment, promoting technology transfer, and infrastructure development, enhancing resource allocation efficiency. The findings highlight variations in policy effectiveness across regions and urban hierarchies, with differing impacts between Eastern and Central–Western regions as well as between center and noncenter cities. These results provide empirical insights for optimizing environmental policies to suit diverse urban contexts.

Keywords: New energy demonstration city; Green total factor productivity; Foreign direct investment; Infrastructure development; Environmental policy; Urban sustainability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005240

DOI: 10.1016/j.frl.2025.107261

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