Impact of air pollution prevention and control on urban green economy efficiency: evidence from China

One of the Sustainable Development Goals is to enable cities to thrive, improve resource efficiency, and reduce pollution. However, balancing economic development with pollution control and fostering green growth remains a major challenge for developing countries. This study, using panel data from 284 prefecture-level and above cities in China from 2006 to 2020, evaluates urban green economy efficiency (GEE). Then, adopting implementation of "12th Five-Year Plan for Key Regional Air Pollution Prevention and Control" in China as a quasi-natural experiment, this study investigates the impact of air pollution prevention and control (APPC) on urban GEE. Findings reveal an overall upward trajectory in urban GEE across China, marked by discernible regional differentiations following implementation of national Plan. Considering the "hysteresis effect" and spatially "pollution halo effect", APPC notably improves urban GEE, particularly within cities of eastern zone, high-population density cities, large-sized cities, non resource-based cities and major-APPC cities. Importantly, APPC acts as a catalyst for both enhancing green innovation quality and optimizing industrial structures, ultimately fostering urban GEE in China. These findings are significant and also provide a valuable supplement to the existing study.