How does the transition policy of mineral resource-exhausted cities affect the process of industrial upgrading? New empirical evidence from China

Abstract

Recognizing the accelerated depletion of mineral resources such as coal, metallurgy, and petroleum in resource-depleted cities is merely a matter of time. Consequently, the industrial restructuring and upgrading of these cities have become a high-priority concern in ensuring sustainable natural resource utilization and environmental sustainability. In this way, this paper is about the mineral resource-exhausted city transition program. It uses China's county and enterprise data from 2004 to 2013 and a staggered difference-in-difference model to figure out how the supportive policy affected industrial upgrading. Our findings indicate that transition policies pose a significant promoting effect on stimulating the industrial upgrading process in Chinese mineral resource-exhausted cities. Specifically, this positive effect is more pronounced in counties characterized by high levels of energy efficiency and environmental performance. Carrying out robustness tests, the preliminary regression results are verified. Heterogeneous influences have been partially established among cities with distinct geographical regions and resource endowment attributes. Further mechanism analysis reveals that heightened cost pressures, incentives for innovation, economic performance attractiveness, and improvements in energy efficiency constitute the primary micro-channels driving industrial upgrading throughout the sample period. This study holds significant global relevance for the sustainable management of natural resources and the sustainable development of mineral resource-exhausted cities in similar emerging economies.