Curse or blessing? The relationship between sustainable development plans for resource cities and corporate sustainability - Evidence from China

Abstract

In recent years, the sustainable development of resource cities has become a challenge for all countries. It aims to transform the traditional monolithic economic model and find a way to develop the city's economy and environment in harmony. In this context, we uncover the relationship between sustainable development plan of resource-based cities (SDPRC) and corporate sustainable performance and examine possible pathways for action. Using a difference-in-differences (DID) model and a series of robustness tests, our study reveals the following. First, SDPRC enhances corporate sustainability. Second, possible mechanisms for SDPRC are explored. SDPRC achieves corporate sustainability by optimal resource allocation and increasing green innovation outputs. Third, urban heterogeneity is explored and it is found that SDPRC only has a positive impact on the sustainable performance in growth and mature cities, but not in declining and regenerating cities. Finally, firm heterogeneity was examined, with SDPRC having a more positive impact on the sustainable performance of state-owned firms, large firms and heavily polluting firms. This study sheds light on the impact of SDPRC at the firm level and provides new theoretical insights for urban planning policy reform in developing countries such as China.