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New energy demonstration cities policy and urban green transformation

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  • Wang, Peng
  • Li, Donghai

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.

Suggested Citation

  • Wang, Peng & Li, Donghai, 2025. "New energy demonstration cities policy and urban green transformation," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005240
    DOI: 10.1016/j.frl.2025.107261
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    References listed on IDEAS

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    1. Dai, Jiapeng & Mehmood, Usman & Nassani, Abdelmohsen A., 2025. "Empowering sustainability through energy efficiency, green innovations, and the sharing economy: Insights from G7 economies," Energy, Elsevier, vol. 318(C).
    2. Hou, Yaru & Yang, Mian & Ma, Yanran & Zhang, Haiying, 2024. "Study on city's energy transition: Evidence from the establishment of the new energy demonstration cities in China," Energy, Elsevier, vol. 292(C).
    3. Dai, Jiapeng, 2025. "Is policy pilot a viable path to sustainable development? Attention allocation perspective," International Review of Financial Analysis, Elsevier, vol. 98(C).
    4. Md. Ziaul Islam, 2024. "Can China’s rural revitalisation policies be an example for other countries aligning with sustainable development goals (SDGs)-1, 2 and 12?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 16(4), pages 763-786, June.
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    Cited by:

    1. He, Xiaoping & Jiang, Shuo & Yu, Yuxuan & Su, Siyi, 2025. "Impact of novel infrastructure investments on productivity: Evidence from public procurement of EV charging facilities in China," Energy, Elsevier, vol. 334(C).

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