The Impact of New-Type Urbanization Policy on Urban Green Total Factor Productivity: New Evidence from China

Abstract

China's new-type urbanization has been instrumental in fostering high-quality economic and social progress. This research explores the impact and underlying mechanisms of the newtype urbanization policy on urban green total factor productivity (GTFP) by analyzing a sample of 165 Chinese prefecture-level cities from 2009 to 2020. Utilizing the difference-indifferences (DID) approach, the study uncovers several key findings: (1) compared to non-pilot areas, the new-type urbanization policy significantly boosts urban GTFP by 43.5%, supporting a shift towards more sustainable and eco-friendly urban growth; (2) the analysis of impact mechanisms indicates that these policies enhance urban GTFP through technological innovation and environmental regulation; and (3) the urban agglomeration model test reveals that being part of an urban agglomeration amplifies the effects of the new-type urbanization policy on GTFP. These results underscore the significance of these policies in driving sustainable and high-quality urban development in China, offering valuable insights for policymakers to formulate and implement effective urbanization strategies.

Keywords: new-type urbanization, green total factor productivity, DID, influencing mechanisms, China