How does environmental legislation guide urban green transition development? Evidence from China

Based on the unique perspective of local environmental regulations promulgated in Chinese prefecture-level cities from 2000 to 2018, this paper examines the impact of urban environmental legislation on green total factor energy efficiency (GTFEE). The results show that implementing environmental legislation significantly improves local GTFEE, with comprehensive protection regulations contributing to local energy efficiency improvements, while the impact of pollution prevention regulations is insignificant. This conclusion remains robust to multiple scenarios. Potential mechanisms through which environmental legislation can guide urban green transition include the industrial upgrading effect represented by clean industry development and polluting industry exit, as well as the technical innovation effect achieved through new technology generation and old technology upgrading. Furthermore, environmental legislation with a higher degree of regulatory effectiveness has a greater potential for energy saving. Environmental legislation has a more significant impact on improving GTFEE in cities in non-old industrial bases, with less frequent turnover of officials, and in central and western regions in China. This study evaluates the positive impact of urban environmental legislation on GTFEE, aiming to advancing the rule of law in local environmental pollution governance and thereby promote urban green transition.

Automated summary

This paper examines the impact of urban environmental legislation on green total factor energy efficiency (GTFEE) by analyzing the unique perspective of local environmental regulations in Chinese prefecture-level cities from 2000 to 2018. The results indicate that implementing environmental legislation significantly improves local GTFEE, with comprehensive protection regulations contributing more to energy efficiency improvements compared to pollution prevention regulations. The study suggests that environmental legislation can guide urban green transition through industrial upgrading and technological innovation, and regulations with higher regulatory effectiveness have a greater potential for energy saving. Additionally, the impact of environmental legislation on improving GTFEE is more significant in cities in non-old industrial bases, with less frequent turnover of officials, and in central and western regions in China.