Does Promoting New Urbanization Help Mitigate Environmental Pollution: Evidence from China’s Pilot Policies for New Urbanization

China’s economy has transitioned from a period of rapid development to one characterized by high-quality growth. A key strategy in this transition is the construction of new urbanization, which serves as a crucial driver of high-quality development in urban and rural landscapes. This study attempts to evaluate the impact of new urbanization, implement through a comprehensive pilot policy acting as a quasi-natural experiment, on urban environmental pollution. By employing a multi-period difference-in-differences method, panel data from 186 prefecture-level cities in China spanning 2012 to 2021 is analyzed. The major research findings are as follows. First, the implementation of pilot policies for new urbanization has significantly reduced urban environmental pollution levels. Second, through a meticulous mechanism test, it is evident that the pilot policy for new urbanization achieves a reduction in environmental pollution by optimizing energy structures and fostering innovation in green technologies. Third, regional variations in the effectiveness of the new urbanization pilot policy have been identified by the heterogeneity test. The study’s findings provide empirical support and policy recommendations to guide China in aligning the construction of new urbanization with ecological sustainability.