Green
development and circular economy are vital means for sustainable development.
This paper, based on China’s 279 prefectures’ 2004 to 2018 panel data, uses
urban minerals demonstrating base policy as a para-natural test to establish a
DID (differences-in-differences) model, which is employed to study the impacts of construction of
urban minerals demonstrating base on relieving environmental pollution, and the
adjusting effect of research inputs and marketization degree. The results show
that construction of urban minerals demonstrating base outstandingly relieves
environmental pollution, which is offset by research inputs and marketization
degree. Size heterogeneity test indicates that construction of urban minerals
demonstrating base have less influence on relieving tier1 urban environmental
pollution than non-tier 1. Regional heterogeneity shows that construction of
urban minerals demonstrating base variably relieves urban environmental
pollution, less in the central cities, strong in the eastern, and strongest in
the western. Batch heterogeneity shows that 2015 demonstrating bases have the
premium results, while 2012 just don’t. which is also validated by PSM-DID
stability test. Empirical study on impacts and effects of construction of urban
minerals demonstrating base can theoretically improve China’s performance
evaluation framework in urban minerals demonstrating base policies, and
practically help develop China’s circular economy. This paper presents
scientific supports and theoretical basis for China to appropriately develop
urban minerals, to reach green sustainable development and circular economy.