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China has achieved remarkable results in sustainable development, particularly in integrating green innovation to enhance eco-efficiency. But why choose green innovation as the driver for urban eco-efficiency? How did it do? Based on ecological civilization demonstration zone in China (Yangtze River Economic Belt) city data from 2006 to 2019. This research developed comprehensive evaluation systems to measure both urban green innovation and ecoefficiency, making use of the SBM model with undesired output to gauge ecological efficiency of urban areas. On this basis, we extended analysis by applying a baseline regression model and a Spatial Durbin model to delve into the mechanisms of green innovation affects eco-efficiency. The results are as follows. (1) green innovation and urban eco-efficiency showed fluctuating upward trends but that regional heterogeneity existed among the three regions. Specifically, the lower reaches outperform in green innovation, closely followed by the middle and upper reaches. Concurrently, the eco-efficiency levels of the middle reaches surpass those of the lower and upper reaches. (2) Our findings confirmed that green innovation promotes eco-efficiency by pursuing economic growth while reducing externalities. Furthermore, green innovation and eco-efficiency exhibit a positive spatial correlation and benefits neighboring city’s’ eco-efficiency, revealing spatial spillover effect. (3) Technological progress and industrial restructuring, driven by green innovation practices, emerge as pivotal drivers for the improvement in eco-efficiency. The study's insights provide valuable guidance to policymakers and stakeholders seeking to leverage green innovation practices to promote long-term and healthy urban development.
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