From policy pilots to green transformation: multidimensional evidence of how STF policies impacts the enhancement of urban green competitiveness

This study investigates how science, technology, and finance (STF) policies improve urban green transformation and competitiveness. Utilizing a multi-period difference-in-differences (DID) model, we analyse panel data from 285 Chinese cities spanning the period 2006–2022 to assess the effect and underlying mechanisms of STF policies on urban green competitiveness. Results show that the implementation of STF policies significantly enhances urban green competitiveness, with an average improvement ranging from 8.12% to 9.18%. Our analysis of the underlying mechanisms reveals that this improvement is driven by three key factors: increased financial incentives for research and development, a rise in green patent awards, and improved total factor productivity. These findings demonstrate that STF policies enhance urban green competitiveness both directly and indirectly through innovation and productivity gains. In addition, we highlight the heterogeneity of STF policy effects across regions, city sizes, resource endowments, and city clusters. Our study provides new empirical evidence and policy insights to guide regions in harnessing the combined power of science, technology, and finance to achieve green and sustainable urban development.