Unlocking Synergies: How Digital Infrastructure Reshapes the Pollution-Carbon Reduction Nexus at the Chinese Prefecture-Level Cities

Zhe Ji, Yuqi Chang and Fengxiu Zhou ()
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Zhe Ji: Newcastle Business School, The University of Newcastle, Newcastle 2300, Australia
Yuqi Chang: School of Economics and Management, Jiangxi Normal University, Nanchang 330022, China
Fengxiu Zhou: School of Economics and Management, Jiangxi Normal University, Nanchang 330022, China

Sustainability, 2025, vol. 17, issue 15, 1-28

Abstract: In the context of global climate governance and the green transition, digital infrastructure serves as a critical enabler of resource allocation in the digital economy, offering strategic value in tackling synergistic pollution and carbon reduction challenges. Using panel data from 280 prefecture-level cities, this study employs a multiperiod difference-in-differences (DID) approach, leveraging smart city pilot policies as a quasinatural experiment, to assess how digital infrastructure affects urban synergistic pollution-carbon mitigation (SPCM). The empirical results show that digital infrastructure increases the urban SPCM index by 1.5%, indicating statistically significant effects. Compared with energy and income effects, digital infrastructure can influence this synergistic effect through indirect channels such as the energy effect, economic agglomeration effect, and income effect, with the economic agglomeration effect accounting for a larger share of the total effect. Additionally, fixed-asset investment has a nonlinear moderating effect on this relationship, with diminishing marginal returns on emission reduction when investment exceeds a threshold. Heterogeneity tests reveal greater impacts in eastern, nonresource-based, and environmentally regulated cities. This study expands the theory of collaborative environmental governance from the perspective of new infrastructure, providing a theoretical foundation for establishing a long-term digital technology-driven mechanism for SPCM.

Keywords: digital infrastructure; synergistic effects; carbon mitigation; multiperiod DID; fixed-asset investment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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