Does industrial sustainable development policy act as a booster for urban economic growth? Evidence from China's eco‐industrial parks

Eco‐industrial parks (EIPs), which reduce pollution and transform the industrial sector to be more environmentally benign, represent the industrial sustainable development policy. However, little research has concentrated on its economic effects. We explore the impacts of 93 national demonstration EIPs on urban economic development using time‐varying difference‐in‐difference, based on panel data from 330 Chinese cities from 1995 to 2018. We show that EIPs have contributed to an economic growth range between 7.47% and 7.61% in pilot cities, with robustness considering price deflators and alternative satellite data on night lights. Structure, technological, and scale effects help explain the mechanisms. Further estimates show that EIPs have had mixed success in addressing the resource curse, where they only alleviate the curse for growing resource‐based cities. We argue that the industrial sustainable development policy not only conveys significant economic benefits but also holds the potential to address the resource curse.