Energy green growth has become China's development goal in this new era of carbon neutrality, and urbanization development must make better use of energy resources. Hence, this paper investigates energy utilization in urbanization development by examining the elements that determine carbon emission intensity, which reflects energy resource consumption, and the theoretical and empirical association between urban development level and carbon emission intensity. Using annual statistics panel data for the provinces of China from 2008 to 2019, we tested a spatial panel model and settled on the spatial Durbin model to examine the effect of urbanization on carbon emissions. The “inverted N-shaped” curve, not the “inverted U-shaped” curve of conventional studies, better describes urbanization's impact on carbon emissions. The distinctiveness of local urban development in China drives this result, which has ramifications for regional policy. According to this study, output-inhibiting impact and environmental resilience mechanisms affect urbanization's aggregation effect and output expansion's emission effect. To further control carbon emission intensity and better use energy resources, this paper recommends better industrial structure adjustment, strengthening the comprehensive use of natural resources during urban development, and reasonable coordination of urban planning to efficiently mobilize energy resources.