Urban energy efficiency: A path towards sustainable futures in the age of energy transition

As cities are faced with increasing resource and environmental problems, sustainable urban growth is progressively becoming dependent on enhancing Green Financial Performance (GFP). Although China's new energy transition program represents an exciting paradigm change in the field of green energy, there needs to be more analysis on its impact on environmentally responsive economic development. This study evaluates the GFP of 255 Chinese cities using the non-radial distance's role approach, using city level panel data from 2005 to 2021. Based on the analysis, the results are then utilized to give quasi-experimental observations about the impact of the New Energy Demonstration City (NEDC) policy on urban GFP. China's NEDC policy has been shown to enhance green economic growth in urban areas, with 2% greater GFP in demonstration cities. This approach promotes sustainability using eco-finance, technology, and industry, although its effects differ depending on geography and available resources. The results remain stable, even after extensive robustness testing. According to a heterogeneity study, GFP of the central and western region, along with non-resource cities are more strongly impacted by the NEDC policy. Analysis of the policy's underlying mechanisms reveals that progress in technical innovation, upgrading industries and development of green finance are the primary forces behind the policy's beneficial effects. The NEDC policy can strike a good balance between environmental and economic nexus, thereby becoming a model for sustainable urban development.