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The circular economy offers a key pathway to achieve the joint improvement of resource conservation and carbon reduction, yet its causal effect on urban energy efficiency remains insufficiently examined. This paper takes China’s Zero-Waste City (ZWC) policy as a quasi-natural experiment and uses panel data from prefecture-level cities between 2006 and 2023. By applying staggered difference-in-differences and double machine learning methods, we evaluate the effect of urban circular economy transformation on energy efficiency. The results reveal four main findings: (1) The ZWC policy significantly improves energy efficiency in pilot cities. (2) The policy operates through three mechanisms: resource circulation, structural optimization, and innovation compensation. (3) Policy effects are stronger in environmentally regulated cities, large cities, and regions with higher artificial intelligence development. (4) The policy also generates broader benefits beyond energy savings, including coordinated fiscal, economic, and environmental gains. Overall, this paper highlights the spillover benefits of the circular economy from waste reduction to energy conservation and provides policy implications for coordinating waste management and energy transition at the urban level.
Li et al. (Thu,) studied this question.
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