Does the low-carbon city pilot scheme enhance urban total environmental quality? Evidence from China

China’s low-carbon city pilot scheme (LCCPS) supports a broad economic and social systemic transition. However, current analyses have only considered the unilateral impact of the LCCPS on the environment without assessing total environmental quality (TEQ). We employed a time-varying difference-in-difference model to detect the causal effect of the LCCPS on urban TEQ, using panel data extracted from satellite observations, including information on biodiversity, vegetation coverage, water resources, soil pollution, contamination pressure, and frequency of environmental pollution events. We found, first, that the scheme can ameliorate urban TEQ. Second, this effect is more obvious in cities in the eastern region, of high economic level, that are resource-dependent, and have a high industrial level. Finally, facilitating green technology innovation and raising public environmental awareness are crucial to achieve the scheme’s objectives. This study provides convincing evidence to support the promotion of the LCCPS in developing countries.