Urban green development: Can institutional openness enhance green total factor productivity?

• Institutional openness significantly enhances green total factor productivity. • The effect is more pronounced in peripheral, eastern, non-resource-based cities, and those with advanced digital infrastructure. • This can be achieved by innovation incentives, entrepreneurial spirit, and unified large market. The vigorous development of a green economy and the establishment of a comprehensive green, low-carbon, and circular economic system are essential material guarantees to overcome urban resource and environmental constraints and achieve high-quality development. Utilizing data from Chinese prefecture-level cities, this paper empirically investigates the impact of institutional openness on green total factor productivity (GTFP) by constructing a comprehensive index of institutional openness. The findings reveal that institutional openness significantly enhances GTFP, particularly in peripheral, eastern, non-resource-based cities, and those with advanced digital infrastructure. Key mechanisms for this enhancement include innovation incentives, entrepreneurial spirit, and unified large market. The paper posits that under the new development paradigm, urban green development should derive new momentum from institutional openness, and scientifically designed open policies can effectively propel urban economic growth toward greater sustainability.