Impact of China's Energy-Consuming Right Trading on Urban Land Green Utilization Efficiency

China is facing development challenges, such as the red line of arable land, resource shortage, and tightening ecological and environmental constraints. In this context, improving land green utilization efficiency (LGUE) is not only an important undertaking to optimize the spatial layout of the country and improve resource carrying capacity but also an inevitable choice for the comprehensive green transformation of economic and social development. China's energy-consuming right trading (ECRT) is an important energy transition demonstration policy; however, its effect on LGUE has yet to be scientifically evaluated in academic research. Using panel data of 260 prefecture-level cities in China from 2009 to 2021, this study first uses a difference-in-difference model to test the effect of ECRT on LGUE, analyze its transmission mechanism, and further examine the impact of urban characteristic heterogeneity on policy effects from multiple perspectives. Results show the following: (1) The pilot policy of ECRT significantly improves urban LGUE, as confirmed by robustness tests. (2) The ECRT pilot policy enhances urban technological innovation, promotes the upgrading of industrial structure, and thereby improves LGUE. (3) The ECRT has a more significant enhancement effect on the central and western cities, large-scale cities, and resource-based cities. (4) Government environmental protection assessment can have a positive moderating effect, that is, further amplifying the effect of ECRT on improving urban LGUE. In conclusion, we should solidly promote the construction of a unified national ECRT market, formulate policy implementation plans tailored to local conditions, and steadily improve LGUE. To a certain extent, this paper reveals the inherent logic of how ECRT affects LGUE, which provides opportunities for cities to improve LGUE through ECRT, and provides reference for promoting the comprehensive green transformation of economic and social development.