Land Restoration as a Catalyst for Regional Economic Revitalization: Evidence From Urban–Rural Transition Zones

Abstract

Large‐scale land restoration is widely expected to improve environmental quality, yet causal evidence on its local economic returns remains limited. This gap is especially important in urban–rural transition zones, where development pressure and ecological damage overlap. We examine 30 zones in China's Yangtze River Delta from 2009 to 2024. The analysis uses cohort‐specific group‐time difference‐in‐differences estimates with never‐treated zones as controls. An interaction‐weighted event study evaluates dynamic effects. Restoration significantly increases real GDP per capita, employment density, and real estate values. The gains are larger in initially poorer zones and in projects that create public green amenities. Placebo tests, matching, and alternative outcomes support the main findings. The evidence identifies land restoration as a practical instrument for ecological recovery and inclusive regional development.