Synergistic abatement effects of Broadband China and environmental regulation: Firm-level evidence

Dongyang Zhang, Dingchuan Bai, Yurun He and Qiaobing Sun

International Review of Financial Analysis, 2024, vol. 96, issue PB

Abstract: Based on the new era context of digital economy and green development, this study uses Broadband China (BC) as a quasi-natural experiment, combining its strategic interaction with environmental regulation (ER), to empirically test the policy synergistic abatement effect of BC and ER. BC has resulted in an average of 6 % reduction in corporate carbon emissions, and the BC–ER policy interaction has encouraged firms to further reduce their emissions. This policy mix mainly exerts an abatement effect on firms by increasing green factors at the input–output stage and improving production efficiency. Furthermore, the digitalization effect of BC reduces corporate carbon emissions. Our empirical results are stronger for firms with high financial constraints, non-heavily polluting firms, non-high-technology firms, state-owned enterprises, and developed urban agglomerations. Furthermore, BC significantly suppresses the sectoral and spatial spillover effects of corporate carbon emissions, and external shocks to ER exacerbate this suppression effect. This study provides empirical evidence supporting the “tripartite win–win” of digital construction, green transformation, and energy conservation.

Keywords: Broadband China; Environmental regulation; Policy synergy; Corporate carbon emissions (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pb:s1057521924006823

DOI: 10.1016/j.irfa.2024.103750

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