A Comparative Study of Policy Instruments for Urban Green Transition: The Cases of Shenzhen and Stockholm

Abstract

Amid accelerating global climate change, cities have emerged as pivotal arenas for advancing sustainable development and carbon neutrality. As hubs of population, industry, and innovation, they serve as crucial drivers of green transformation, where local policy instruments underpin the achievement of broader national and global environmental goals. Shenzhen, representing China’s rapid urban modernization and technological dynamism, and Stockholm, renowned for its advanced environmental governance and social sustainability, exemplify two distinct yet leading pathways toward urban green transition. This study compares the policy instruments employed by these two cities to promote low-carbon development and ecological innovation. Through a systematic literature review and qualitative comparative analysis, the research identifies how regulatory, economic, and informational tools have been differentially combined and prioritized within each governance context. The findings indicate that while Shenzhen’s approach relies heavily on state-led regulation and fiscal incentives, Stockholm emphasizes participatory governance and market-based mechanisms. The comparison underscores that effective urban green transition depends on adaptive policy mixes tailored to local institutional and socio-economic conditions.