The relationship between dynamic monitoring network plans and eco-efficiency – New evidence from atmospheric quality monitoring policy in China

China’s rapid economic development in recent decades has come at a considerable environmental cost. This paper explores whether atmospheric quality monitoring policy (AQMP) improves eco-efficiency by using AQMP as a natural experimental group. We assessed the eco-efficiency of 285 cities in China from 2009 to 2019 using the super-efficient SBM model and estimated the impact of AQMP using the propensity score method Difference-in-Difference (PSM-DID) model. The key findings of this paper are as follows: First, AQMP can enhance eco-efficiency, promoting sustainable urban development. Second, governmental and non-governmental organizations play contrasting roles in either fostering or reversing the positive effects of AQMP. Factors like innovation, clean energy adoption, and industrial structure have a positive mediating influence. Finally, the impact of AQMP on eco-efficiency varies across cities, displaying heterogeneity. Specifically, AQMP has a positive effect on eco-efficiency in resource-rich cities, small and medium-sized urban centers, smart cities, and coastal areas. These findings carry significant implications for the establishment of dynamic monitoring networks and the advancement of eco-efficiency in emerging countries, including China. •Impact of atmospheric quality monitoring policy on eco-efficiency is discussed.•Governmental organizations promote the positive impacts of AQMP.•Non-governmental organizations reverse the positive impacts of AQMP.•Innovation, clean energy, and industrial structure have a positive mediating role.•The impact of AQMP on eco-efficiency has city heterogeneity.