Abstract

Urban agglomerations in China face pronounced internal disparities in environmental, social, and governance (ESG) outcomes. This study evaluates whether cross-jurisdictional spatial coordination planning can narrow such gaps and drive synergistic ESG improvement. Using panel data from Yangtze River Delta (YRD) cities over 2007—2023 and employing a difference-in-differences (DID) design with spatial Durbin models, we assess the 2022 Shanghai Metropolitan Area "1+8" Spatial Coordination Plan. The results show that the plan significantly raises comprehensive ESG scores in treated cities by approximately 0.020, with the strongest effects on environmental and governance dimensions. The policy generates a pronounced "catch-up effect" for peripheral cities, reducing intra-regional inequality. Mechanism tests identify green technology innovation, industrial structure upgrading, and governance capacity enhancement as key transmission channels. Moreover, spatial spillover effects extend beyond the planning area, particularly through economic linkages, indicating substantial peer diffusion. These findings remain robust to placebo and propensity score matching difference-in-differences (PSM-DID) checks. This paper provides causal evidence that spatial coordination planning serves as an effective institutional instrument for enhancing regional sustainability, and offers insights for the ongoing expansion of metropolitan governance in China.

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