Can new urbanization improve urban total-factor energy efficiency in China?

Considering the growing inconsistencies between urban green development and energy consumption, studying the influence of new urbanization (NU) on urban total-factor energy efficiency (TFEE) is essential for new urbanization and sustainable urban development from both a theoretical and practical standpoint. Selecting the 285 Chinese cities panel data from 2005 to 2020, DID model is adopted to examine the effect of the NU on urban TFEE and its transmission mechanism in this article. Results reveal the NU can greatly enhance urban TFEE. Following a battery of robustness tests, this conclusion is valid. In addition, the heterogeneity results indicate that, in the later stages of urbanization, non-resource cities and large cities, the promotion is particularly pronounced. Further examination of its conduction pathway demonstrates that NU increases urban TFEE through an innovation effect, an industry effect, a structural effect, and a regulation effect. •Urban energy efficiency has been measured.•We analyze the effects of New-Urbanization on energy efficiency.•The plan is significantly benefit to improve the urban energy efficiency.•The mechanism has also been investigated.