Reciprocity or conflict? The impact of dual-policy of broadband China and low-carbon city on firms’ green technology innovation

Xin Ning, Qinmeng Wang, Ge Wang and Liumiao Qin

Telecommunications Policy, 2025, vol. 49, issue 10

Abstract: The reciprocal interaction between digital and green policies plays a pivotal role in promoting firms green technology innovation (GTI) and advancing sustainable development. Using panel data from 2011 to 2023 on Chinese A-share listed firms, this study examines the effects of the “Broadband China” (BBC) and Low-Carbon City (LCC) dual-pilot initiatives on firms’ GTI and their underlying mechanisms. The paper reveals that through goal alignment and functional complementarity, dual-pilot policy increases firms’ high-quality GTI by 0.7 % and enhances innovation diffusion by 12.8 %. Causal mediation analysis indicates that the dual-pilot enhance media coverage, attract green investment, and increase government subsidies, thereby strengthening firms’ capacity for high-quality green innovation. Heterogeneity analysis shows that state-owned enterprises benefit more strongly in terms of GTI quality and diffusion. BBC taking the lead in implementing is conducive to the short-term allocation of innovation factors, while LCC taking the lead facilitates long-term innovation diffusion. This research provides quantitative evidence and optimization paths for the reciprocity between digital and green policies.

Keywords: Dual-pilot policy; Green technology innovation; Reciprocal effect; Progressive difference-in-differences model (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.telpol.2025.103059

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