Does new-type urbanization help reduce haze pollution damage? Evidence from China’s county-level panel data

Urban transformation is the key to sustainable urban development. China is currently undergoing massive urban transformation, that is, new-type urbanization. This study explored the relationship between new-type urbanization construction and haze pollution by constructing a time-varying DID model based on 2013–2018 district and county data. Our empirical results show that new-type urbanization can significantly improve haze pollution. We also examined the heterogeneous differences in new-type urbanization’s effects on haze pollution. First, we find that new urbanization construction has no significant effect on haze pollution in cities rich in natural resources. Second, its effect on haze pollution was most pronounced in the eastern region, which had the highest urbanization rate. This study also explored the moderating effect of new urbanization and haze pollution from the urban governance perspective. The results show that the government’s fiscal spending capacity is significant for new-type urbanization’s ability to improve haze pollution. In addition, in the pilot year, the turnover of regional officials enhanced new-type urbanization construction to improve haze pollution. We also find that districts and counties implementing pilot new-type urbanization are conducive to reducing haze pollution in surrounding areas in the same city not implementing new-type urbanization; however, they exacerbate haze pollution in other provincial areas that have not implemented new-type urbanization. Finally, we propose relevant policy recommendations based on the empirical results.