Abstract
The nexus between city size expansion and energy issues has caused heated academic and policy debates. This study empirically investigates the effects of city size on manufacturing firms' energy efficiency in China. Results suggest that the relationship between city size and energy efficiency is inverted U-shaped. City size impacts energy efficiency through its effects on industrial agglomeration and technological innovation. The heterogeneous analysis reveals the differential effects, where firms in energy-intensive sectors, being small and growing, are more affected. Finally, city characteristics, represented by urban sprawl and economic density, significantly moderate the relationship between city size and energy efficiency. These findings provide some insightful references for future urban planning and energy conservation.
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