This study examines the impact of China’s Low-Carbon City Pilot (LCCP) policy on urban land use efficiency (LUE), a pivotal yet underexplored aspect of sustainable urban development within the framework of the United Nations Sustainable Development Goals (SDGs). Using panel data from 281 prefecture-level cities between 2005 and 2021, the study employs a staggered Difference-in-Differences (DID) approach to estimate the policy’s effect. The results of the study showed that LCCP could significantly increase LUE, with results remaining robust across various alternative estimation strategies, including Propensity Score Matching Difference-in-Differences (PSM-DID), Difference-in-Differences with Multiple Time Periods (CSDID), and synthetic control (SC) methods. Mechanism analysis shows that these improvements may be driven through two channels: the advancement of green innovation and the upgrading of industrial structures. Additionally, according to the results of the heterogeneity analysis, policy’s effect is more significant in regions with higher marketization levels, stronger green finance capacity, and elevated administrative ranks. By extending the analysis of land governance beyond traditional environmental indicators and identifying the specific mechanisms and contextual factors, this study not only contributes new empirical insights into the spatial dynamics of China’s dual-carbon transition but also clarifies previously mixed findings by uncovering the mechanisms and contextual factors through which the LCCP enhances LUE.
Zhao et al. (Fri,) studied this question.