This paper uses Low-Carbon Pilot City (LCCP) as a quasi-natural experiment, 282 prefecture-level cities in China from 2007 to 2021, and models such as DID, SDM-DID, and DML to examine the impact of LCCP on urban shrinkage. Research shows that, first, LCCPs have effectively inhibited urban shrinkage, with pilot cities reducing urban shrinkage by 1.8% compared with non-pilot cities. Second, the LCCP may inhibit the city’s ability to shrink by reducing resource allocation efficiency, promoting technological innovation, and optimizing the living environment. Third, the urban shrinkage effect of the LCCP is heterogeneous depending on the economic region and whether the city is resource-based.

With the growing global emphasis on sustainable manufacturing and environmental compliance, waste consumption regulation has become a key policy instrument for promoting cleaner production practices. This study investigates whether China’s Zero-Waste City Pilot (ZWCP) improves corporate green governance performance (GGP), which reflects firms’ environmental management systems, regulatory compliance, and pollution control practices within production processes. Using micro-level data from A-share listed companies in China spanning 2009 to 2023 and employing a Difference-in-Differences (DID) model, the analysis reveals that ZWCP significantly enhances GGP. The effects are particularly pronounced in private enterprises, heavily polluting industries, and sectors characterized by high competition and regulatory intensity. Mechanism analyses show that ZWCP improves GGP through three key channels: strengthening government support, increasing top executives’ emphasis on environmental protection, and boosting financial institutions’ willingness to provide credit. Additional analysis demonstrates that ZWCP not only promotes improvements in GGP but also significantly drives green innovation and long-term sustainable development. These findings provide micro-level evidence that waste regulation can improve environmental management capacity within corporate production systems and contribute to broader sustainable industrial practices.