Carbon Emission Reduction Effects of the Smart City Pilot Policy in China

Long Qian, Xiaolin Xu, Yunjie Zhou, Ying Sun () and Duoliang Ma
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Long Qian: School of Economics and Management, Anhui Polytechnic University, Wuhu 241000, China
Xiaolin Xu: School of Economics and Management, Anhui Polytechnic University, Wuhu 241000, China
Yunjie Zhou: School of Economics and Management, Anhui Polytechnic University, Wuhu 241000, China
Ying Sun: School of Economics and Management, Anhui Polytechnic University, Wuhu 241000, China
Duoliang Ma: School of Economics and Management, Anhui Polytechnic University, Wuhu 241000, China

Sustainability, 2023, vol. 15, issue 6, 1-24

Abstract: Carbon emission reduction is an important goal of China’s sustainable economic development. As a new urbanization construction model, the importance of smart city construction for economic growth and innovation is recognized by the academic community. The impact of smart cities on the environment, especially on carbon emission reductions, has yet to be verified. This has implications for the green and low-carbon transformation of China, the realization of the peak carbon and carbon neutrality goals and the effectiveness of smart city pilot policies. For these reasons, this paper utilizes China’s urban panel data, and using the difference-in-difference method, investigates the smart city pilot policy as a quasi-natural experiment of new urbanization construction and its impact on urban carbon emission reductions. The results are summarized as follows: (1) Smart city construction has reduced the carbon emissions of pilot cities by about 4.36% compared with non-pilot cities. (2) The dynamic impact analysis found that the carbon emission reduction effect of smart city construction tends not to be effective until the third year of the implementation of the policy, that the policy effect gradually increases over time, and that its carbon emission reduction dividend has a long-term sustainability. (3) The analysis of the influence mechanisms determined that smart city construction mainly promotes urban carbon emission reduction through three paths, including improving technology innovation capacity, enhancing the attraction of foreign direct investment, and accelerating the upgrading of industrial structure. (4) The heterogeneity analysis indicates that smart city construction has stronger carbon emission reduction effects in the “two control zones”, non-old industrial bases and non-resource-based cities.

Keywords: smart city construction; carbon emission reduction; difference-in-difference method; urbanization; policy; effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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