The effects of China's sustainable development policy for resource-based cities on local industrial transformation

Abstract

This study examines China's Sustainable Development Plan of National Resource-based Cities, 2013–2020 (SDPNRBC) as a quasi-natural experiment to investigate how SDPNRBC implementation affects industrial transformation in resource-based cities. The analysis, employing a difference-in-differences method, shows that SDPNRBC implementation can significantly reduce the proportion of secondary industries in gross domestic product (GDP) in resource-based cities. The analysis also finds that cities in the central and western regions of China are affected more strongly by the SDPNRBC than cities in the eastern region are. Moreover, resource-based cities at the regenerative or declining stage are found to be affected by the SDPNRBC more strongly than cities at the mature stage are. A mechanism analysis also indicates that SDPNRBC implementation can reduce the proportion of the secondary industry in GDP by reducing resource dependence in resource-based cities. Finally, the study finds that the SDPNRBC promotes the development of the tertiary industry and facilitates the upgrading of the industrial structure in resource-based cities.