Can Local Industrial Policy Enhance Urban Land Green Use Efficiency? Evidence from the “Made in China 2025” National Demonstration Zone Policy

As the fundamental physical carrier for human production and socio-economic endeavors, enhancing urban land green use efficiency (ULGUE) is crucial for realizing sustainable development. To effectively enhance urban land green use efficiency, this study systematically examines the intrinsic relationship between industrial policies and ULGUE based on panel data from 286 Chinese cities (2010–2022), employing an integrated methodology that combines the Difference-in-Differences (DID) model, Super-Efficiency Slacks-Based Measure Data Envelopment Analysis model, and ArcGIS spatial analysis techniques. The findings clearly demonstrate that the establishment of the “Made in China 2025” pilot policy significantly improves urban land green use efficiency in pilot cities, a conclusion that endures following a succession of stringent evaluations. Moreover, studying its mechanisms suggests that the pilot policy primarily enhances urban land green use efficiency by promoting industrial upgrading, accelerating technological innovation, and strengthening environmental regulations. Heterogeneity analysis further indicates that the policy effects are more significant in urban areas characterized by high manufacturing agglomeration, non-provincial capital/non-municipal status, high industrial intelligence levels, and less sophisticated industrial structure. This research not only provides valuable policy insights for China to enhance urban land green use efficiency and promote high-quality regional sustainable development but also offers meaningful references for global efforts toward advancing urban sustainability.