New-Type Urbanization on pollution and carbon reduction impact mechanism and co-benefits analysis

How to simultaneously reduce environmental pollution and CO₂ emissions is a challenging issue for various countries, particularly in China. Unlike traditional urbanization process that inevitably deteriorates environment, China initiated a New-Type Urbanization (NTU) strategy in 2014 following four principles: people-centeredness, optimal layout, ecological civilization, and cultural inheritance. Previous studies conduct research on NTU's influencing pollution and carbon reduction (PCR), respectively, while ignoring synergistic governance. The research objectives of this study are to investigate the potential mechanisms of NTU's influencing PCR and co-benefits for PCR. By leveraging 30 provincial-level data from China spanning 2005 to 2019, we comprehensively construct an index and assess NTU from six domains: population, economic, environmental, spatial, equitable, and social urbanizations and combine a coupling coordination model with a 2-way fixed effects model for empirical analysis. Our findings demonstrate that (1) NTU tends to significantly suppress pollution and carbon emissions, and this finding is reliable after several robustness tests and solving endogeneity with relief degree of land surface as an instrumental variable (IV). (2) The reducing effects seem to be achieved by promoting talent agglomeration, facilitating economic agglomeration and strengthening environmental regulations. (3) NTU tends to have both current and time-lag effects on pollution and carbon reduction, and their co-benefits are mainly influenced by the time-lag effect. Accordingly, policy recommendations are recommended: governments need to plan urbanization rationally, including strengthening public infrastructure and social welfare, pursuing the strategy of introducing talents, planning land and resource use rationally and efficiently, and strengthening environmental regulations. In addition, a mechanism should be developed to reduce pollution and carbon in an integrated manner for the long term. Our study broadens the horizons for international scholars engaged in sustainable urbanization research, enriching the array of research methodologies.