How Does New Energy Demonstration City Policy Promote Urban Land Use Efficiency in China? The Mediating Effect of Industrial Structure

As an effective measure to solve the dilemma of urban energy consumption and economic development, the new energy demonstration city (NEDC) policy in China could greatly promote the development of the new energy industry and urban economy. This study aims to explore how the NEDC policy effectively promotes the growth of urban land use efficiency (ULUE), an essential indicator of economic development, through the urban industrial structure. Based on the panel data of 285 Chinese cities during 2003-2019, this study took the NEDC policy as a quasi-natural experiment and employed the PSM-DID method and the mediating effect model to objectively evaluate its policy effects. We found that the NEDC policy could significantly promote the growth of the ULUE. Specifically, the ULUE has been significantly improved by 17.0%. The NEDC policy could also promote the ULUE indirectly through the mediating effect of industrial structure advancement (ISA), but the mediating effect of industrial structure rationalization (ISR) was not significant. Furthermore, the promotional effect of the NEDC policy on the ULUE has regional heterogeneity. Compared with eastern cities and high-innovation cities, central and western cities and medium-innovation and low-innovation cities can obtain much higher promotion effects. This study may provide some policy inspiration for policymakers to support low-corban and sustainable economic development and urban land use.