Achieving sustainable development necessitates the exploration of innovative approaches towards low-carbon development and efficient resource management. By adopting the low-carbon city pilot project as a policy shock of Government Resource Management Policies (GRMP), we aim to scrutinize the nuanced impacts of GRMP on green productivity (GTFP). Using the difference-in-difference (DID) approach and panel data from 280 cities in China. Our findings reveal a significant relationship between GRMP and GTFP. In the immediate short-term, GRMP exhibits a negative effect on GTFP growth, followed by a long-term positive promoting effect. A detailed temporal analysis uncovers an “inverted N″ time-period effect of GRMP on GTFP growth. Further exploration into the mechanisms driving this influence reveals three key aspects: the reduction of natural resources consumption and the promotion of low-carbon production (LCP), low-carbon transportation (LCT), and low-carbon industries (LCI). While the regulated effect of financial technology resources on the relationship between GRMP and GTFP is positive but statistically insignificant, the regulated effect of digital resource policy emerges as positive and significant. Additionally, the regulated effect of mineral and forest resource coverage rate is positive but not statistically significant in the context of the influence of GRMP on GTFP. This comprehensive analysis contributes to our understanding of the dynamic interplay between policy interventions, resource management, and sustainable development in the Chinese urban landscape.