Urban sustainable development goals and ecosystem services: Pathways to achieving coordination

It has been widely recognized that progress toward achieving Sustainable Development Goals (SDGs) must be better harmonized with Ecosystem Services (ESs) to tackle global challenges. In China, the National Key Ecological Function Areas (NKEFAs) were set up as one of the ecological fiscal transfer projects. Despite its significant influences on the SDGs-ESs nexus, there is a lack of empirical studies on the effects and mechanisms of policy. In response, this study provides a synthesized framework that incorporates the coupling coordination degree between the Urban Sustainable Development Goals (USDGs) and Ecosystem Services Scores (ESSs), empirically verifies the policy effect using the difference-in-differences model, and then further investigates the mechanisms of government action to coordinate urban SDGs and ESs. The results show that: (1) The coupling coordination degree between USDGs and ESSs varies significantly across different regions but steadily increases over time, with a faster increasing rate of coordination degree growth in NKEEFAs pilot cities compared to non-pilot cities. (2) The policy has demonstrated benefits in coordinating USDGs and ESSs with a coefficient of 0.005. In detail, the policy enhances ESSs but concurrently exerts a negative influence on USDGs, with coefficients are 0.008 and −0.004 respectively, suggesting an uneven distribution of the policy's impacts. (3) The study unveils the 'technological innovation effect' and the 'industrial agglomeration effect' as crucial mediating pathways for policy effect, laying a solid foundation for USDGs and ESSs coordination. In total, the study highlights the critical need to account for regional development disparities and adequate funding in ecological protection policies to ensure fairness and effectiveness from a central decision-making standpoint. It recommends enhancing transparency in fiscal expenditures and fostering regional joint coordination to address local government challenges. These insights from this study can offer valuable guidance for policymakers to refine policy implementation and promote the coordination of regional ESs and SDGs.