IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v241y2022ics0360544221031583.html
   My bibliography  Save this article

Can smart city construction improve urban ecological total factor energy efficiency in China? Fresh evidence from generalized synthetic control method

Author

Listed:
  • Dong, Feng
  • Li, Yangfan
  • Li, Kun
  • Zhu, Jiao
  • Zheng, Lu

Abstract

The smart city concept was proposed in the wave of “New Urbanism”. To improve the quality of urbanization, China has launched smart city construction since 2012. Taking 153 cities from China as the research sample, we evaluated the impact of smart city policy (SCP) on urban ecological total factor energy efficiency (ETFEE) using the generalized synthetic control method. The main results are as follows. (1) SCP significantly improves urban ETFEE after controlling the endogeneity and unobserved time-varying confounders, and this conclusion is strongly supported by multiple robustness tests. (2) There is a two-stage mediating mechanism through which SCP functions. Specifically, SCP promotes innovation by enhancing intelligence (including informatization, human capital, and technology), thereby improving urban ETFEE. (3) Public participation and market conditions play moderating effects, and they improve the contribution of SCP on urban ETFEE. (4) For heterogeneity, SCP plays a significant role in eastern cities, large-size cities, non-resource-based cities, and non-old industrial base cities, whereas it has little impact on other cities’ ETFEE. This study provides empirical evidence and policy insights for constructing smart cities in China and even other emerging economies.

Suggested Citation

  • Dong, Feng & Li, Yangfan & Li, Kun & Zhu, Jiao & Zheng, Lu, 2022. "Can smart city construction improve urban ecological total factor energy efficiency in China? Fresh evidence from generalized synthetic control method," Energy, Elsevier, vol. 241(C).
  • Handle: RePEc:eee:energy:v:241:y:2022:i:c:s0360544221031583
    DOI: 10.1016/j.energy.2021.122909
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221031583
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2021.122909?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Esseghir, Asma & Haouaoui Khouni, Leila, 2014. "Economic growth, energy consumption and sustainable development: The case of the Union for the Mediterranean countries," Energy, Elsevier, vol. 71(C), pages 218-225.
    2. James J. Heckman, 2008. "Econometric Causality," International Statistical Review, International Statistical Institute, vol. 76(1), pages 1-27, April.
    3. Yigitcanlar, Tan & Kamruzzaman, Md., 2018. "Does smart city policy lead to sustainability of cities?," Land Use Policy, Elsevier, vol. 73(C), pages 49-58.
    4. Siqi Zheng & Jianghao Wang & Cong Sun & Xiaonan Zhang & Matthew E. Kahn, 2019. "Air pollution lowers Chinese urbanites’ expressed happiness on social media," Nature Human Behaviour, Nature, vol. 3(3), pages 237-243, March.
    5. Xu, Yiqing, 2017. "Generalized Synthetic Control Method: Causal Inference with Interactive Fixed Effects Models," Political Analysis, Cambridge University Press, vol. 25(1), pages 57-76, January.
    6. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
    7. Liu, Yajie & Dong, Feng, 2022. "What are the roles of consumers, automobile production enterprises, and the government in the process of banning gasoline vehicles? Evidence from a tripartite evolutionary game model," Energy, Elsevier, vol. 238(PC).
    8. Thellufsen, J.Z. & Lund, H. & Sorknæs, P. & Østergaard, P.A. & Chang, M. & Drysdale, D. & Nielsen, S. & Djørup, S.R. & Sperling, K., 2020. "Smart energy cities in a 100% renewable energy context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 129(C).
    9. Laurent Gobillon & Thierry Magnac, 2016. "Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 535-551, July.
    10. Najarzadeh, Reza & Rahimzadeh, Farzad & Reed, Michael, 2014. "Does the Internet increase labor productivity? Evidence from a cross-country dynamic panel," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 986-993.
    11. Sotiris Zygiaris, 2013. "Smart City Reference Model: Assisting Planners to Conceptualize the Building of Smart City Innovation Ecosystems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(2), pages 217-231, June.
    12. Dohyung Kim & Sun Go, 2020. "Human Capital and Environmental Sustainability," Sustainability, MDPI, vol. 12(11), pages 1-14, June.
    13. Robert G. Hollands, 2008. "Will the real smart city please stand up?," City, Taylor & Francis Journals, vol. 12(3), pages 303-320, December.
    14. Gary Koop & Lise Tole, 2008. "What is the environmental performance of firms overseas? An empirical investigation of the global gold mining industry," Journal of Productivity Analysis, Springer, vol. 30(2), pages 129-143, October.
    15. Chen, Yin E. & Fu, Qiang & Zhao, Xinxin & Yuan, Xuemei & Chang, Chun-Ping, 2019. "International sanctions’ impact on energy efficiency in target states," Economic Modelling, Elsevier, vol. 82(C), pages 21-34.
    16. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    17. Pan, Yuling & Dong, Feng, 2022. "Design of energy use rights trading policy from the perspective of energy vulnerability," Energy Policy, Elsevier, vol. 160(C).
    18. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    19. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    20. Vaz Martins, Teresa & Araújo, Tanya & Augusta Santos, Maria & St Aubyn, Miguel, 2009. "Network effects in a human capital based economic growth model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(11), pages 2207-2214.
    21. T. D. Stanley & Hristos Doucouliagos & Piers Steel, 2018. "Does Ict Generate Economic Growth? A Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 705-726, July.
    22. Jushan Bai, 2009. "Panel Data Models With Interactive Fixed Effects," Econometrica, Econometric Society, vol. 77(4), pages 1229-1279, July.
    23. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    24. James J. Heckman, 2008. "Causalidad econométrica," Monetaria, CEMLA, vol. 0(3), pages 291-338, julio-sep.
    25. Liang Liang & Jie Wu & Wade D. Cook & Joe Zhu, 2008. "The DEA Game Cross-Efficiency Model and Its Nash Equilibrium," Operations Research, INFORMS, vol. 56(5), pages 1278-1288, October.
    26. Atkinson, Scott E. & Dorfman, Jeffrey H., 2005. "Bayesian measurement of productivity and efficiency in the presence of undesirable outputs: crediting electric utilities for reducing air pollution," Journal of Econometrics, Elsevier, vol. 126(2), pages 445-468, June.
    27. Zhu, Bangzhu & Zhang, Mengfan & Zhou, Yanhua & Wang, Ping & Sheng, Jichuan & He, Kaijian & Wei, Yi-Ming & Xie, Rui, 2019. "Exploring the effect of industrial structure adjustment on interprovincial green development efficiency in China: A novel integrated approach," Energy Policy, Elsevier, vol. 134(C).
    28. Yang, Xinyu & Jiang, Ping & Pan, Yao, 2020. "Does China's carbon emission trading policy have an employment double dividend and a Porter effect?," Energy Policy, Elsevier, vol. 142(C).
    29. Shafiullah, Muhammad & Miah, Mohammad Dulal & Alam, Md Samsul & Atif, Muhammad, 2021. "Does economic policy uncertainty affect renewable energy consumption?," Renewable Energy, Elsevier, vol. 179(C), pages 1500-1521.
    30. Jamile Sabatini-Marques & Tan Yigitcanlar & Tatiana Schreiner & Tatiana Wittmann & Debora Sotto & Tommi Inkinen, 2020. "Strategizing Smart, Sustainable, and Knowledge-Based Development of Cities: Insights from Florianópolis, Brazil," Sustainability, MDPI, vol. 12(21), pages 1-20, October.
    31. Lee, Jung Hoon & Hancock, Marguerite Gong & Hu, Mei-Chih, 2014. "Towards an effective framework for building smart cities: Lessons from Seoul and San Francisco," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 80-99.
    32. Hao, Yu & Gai, Zhiqiang & Wu, Haitao, 2020. "How do resource misallocation and government corruption affect green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 143(C).
    33. Zhang, Yanfang & Zhang, Ming & Liu, Yue & Nie, Rui, 2017. "Enterprise investment, local government intervention and coal overcapacity: The case of China," Energy Policy, Elsevier, vol. 101(C), pages 162-169.
    34. Yang Fu & Weihong Ma, 2020. "Sustainable Urban Community Development: A Case Study from the Perspective of Self-Governance and Public Participation," Sustainability, MDPI, vol. 12(2), pages 1-15, January.
    35. Haarstad, Håvard & Wathne, Marikken W., 2019. "Are smart city projects catalyzing urban energy sustainability?," Energy Policy, Elsevier, vol. 129(C), pages 918-925.
    36. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    37. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
    38. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    39. Caragliu, Andrea & Del Bo, Chiara F., 2019. "Smart innovative cities: The impact of Smart City policies on urban innovation," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 373-383.
    40. Annalisa Cocchia, 2014. "Smart and Digital City: A Systematic Literature Review," Progress in IS, in: Renata Paola Dameri & Camille Rosenthal-Sabroux (ed.), Smart City, edition 127, pages 13-43, Springer.
    41. Michael Storper & Allen J. Scott, 2009. "Rethinking human capital, creativity and urban growth," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 147-167, March.
    42. Kumar, Surender & Managi, Shunsuke, 2009. "Energy price-induced and exogenous technological change: Assessing the economic and environmental outcomes," Resource and Energy Economics, Elsevier, vol. 31(4), pages 334-353, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Jen Chun, 2022. "Understanding the energy consumption of information and communications equipment: A case study of schools in Taiwan," Energy, Elsevier, vol. 249(C).
    2. Yuxi Chen & Mengting Zhang & Chencheng Wang & Xin Lin & Zhijie Zhang, 2023. "High-Tech Industrial Agglomeration, Government Intervention and Regional Energy Efficiency: Based on the Perspective of the Spatial Spillover Effect and Panel Threshold Effect," Sustainability, MDPI, vol. 15(7), pages 1-29, April.
    3. Li, Kun & Dong, Feng, 2022. "Government strategy for banning gasoline vehicles: Evidence from tripartite evolutionary game," Energy, Elsevier, vol. 254(PA).
    4. Shaoyan Yang & Duodong Ding & Churen Sun, 2022. "Does Innovative City Policy Improve Green Total Factor Energy Efficiency? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-30, October.
    5. Fan, Di & Peng, Bo & Wu, Jianxin & Zhang, ZhongXiang, 2024. "The convergence of total-factor energy efficiency across Chinese cities: A distribution dynamics approach," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 406-416.
    6. Yang, Shubo & Jahanger, Atif & Usman, Muhammad, 2024. "Examining the influence of green innovations in industrial enterprises on China's smart city development," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    7. Chen, Jun, 2023. "Mitigating nitrogen dioxide air pollution: The roles and effect of national smart city pilots in China," Energy, Elsevier, vol. 263(PA).
    8. Tatiana Tucunduva Philippi Cortese & Jairo Filho Sousa de Almeida & Giseli Quirino Batista & José Eduardo Storopoli & Aaron Liu & Tan Yigitcanlar, 2022. "Understanding Sustainable Energy in the Context of Smart Cities: A PRISMA Review," Energies, MDPI, vol. 15(7), pages 1-38, March.
    9. Liu, Hongwei & Zhang, Aodi & Wu, Jie, 2023. "Can industrial transfer improve urban innovation efficiency?," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    10. Zhang, Yixiang & Liu, Meiling & Fu, Bowen, 2024. "Can digital technology application promote energy saving and emission reduction practices in enterprise? An empirical study based on the awareness-motivation-capability perspective," Energy, Elsevier, vol. 286(C).
    11. Nhung Thi Nguyen & Mai Thi Ngoc Nguyen & Trang Thi Huyen Do & Truong Quang Le & Nhi Hoang Uyen Nguyen, 2024. "Hedging Carbon Price Risk on EU ETS: A Comparison of Green Bonds from the EU, US, and China," Sustainability, MDPI, vol. 16(14), pages 1-19, July.
    12. Danling Chen & Wenbo Hu, 2023. "Temporal and Spatial Effects of Heavy Metal-Contaminated Cultivated Land Treatment on Agricultural Development Resilience," Land, MDPI, vol. 12(5), pages 1-16, April.
    13. Che, Shuai & Wang, Jun & Chen, Honghang, 2023. "Can China's decentralized energy governance reduce carbon emissions? Evidence from new energy demonstration cities," Energy, Elsevier, vol. 284(C).
    14. Yue, Aobo & Mao, Chao & Wang, Zhuoqi & Peng, Wuxue & Zhao, Shuming, 2024. "Finding the pioneers of China's smart cities: From the perspective of construction efficiency and construction performance," Technological Forecasting and Social Change, Elsevier, vol. 204(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johannes Stübinger & Lucas Schneider, 2020. "Understanding Smart City—A Data-Driven Literature Review," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    2. Bennato, Anna Rita & Davies, Stephen & Mariuzzo, Franco & Ormosi, Peter, 2021. "Mergers and innovation: Evidence from the hard disk drive market," International Journal of Industrial Organization, Elsevier, vol. 77(C).
    3. Xiong, Ruoxuan & Pelger, Markus, 2023. "Large dimensional latent factor modeling with missing observations and applications to causal inference," Journal of Econometrics, Elsevier, vol. 233(1), pages 271-301.
    4. Michał Marcin Kobierecki & Michał Pierzgalski, 2022. "Sports Mega-Events and Economic Growth: A Synthetic Control Approach," Journal of Sports Economics, , vol. 23(5), pages 567-597, June.
    5. Taylor K. Odle & Jennifer A. Delaney, 2022. "You are Admitted! Early Evidence on Enrollment from Idaho’s Direct Admissions System," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(6), pages 899-932, September.
    6. Bai, Jushan & Wang, Peng, 2024. "Causal inference using factor models," MPRA Paper 120585, University Library of Munich, Germany.
    7. Renata Biadacz & Marek Biadacz, 2021. "Implementation of “Smart” Solutions and An Attempt to Measure Them: A Case Study of Czestochowa, Poland," Energies, MDPI, vol. 14(18), pages 1-28, September.
    8. Chakraborty Avinandan & Doremus Jacqueline & Stith Sarah, 2021. "The effects of recreational cannabis access on labor markets: evidence from Colorado," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-86, January.
    9. Victor Chernozhukov & Kaspar Wüthrich & Yinchu Zhu, 2021. "An Exact and Robust Conformal Inference Method for Counterfactual and Synthetic Controls," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1849-1864, October.
    10. Wang, Mengmeng & Zhou, Tao, 2022. "Understanding the dynamic relationship between smart city implementation and urban sustainability," Technology in Society, Elsevier, vol. 70(C).
    11. Bruno Ferman, 2021. "On the Properties of the Synthetic Control Estimator with Many Periods and Many Controls," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1764-1772, October.
    12. Rafaty, R. & Dolphin, G. & Pretis, F., 2020. "Carbon pricing and the elasticity of CO2 emissions," Cambridge Working Papers in Economics 20116, Faculty of Economics, University of Cambridge.
    13. Dallas Dotter & Duncan Chaplin & Maria Bartlett, "undated". "Impacts of School Reforms in Washington, DC on Student Achievement," Mathematica Policy Research Reports 44e95d7566434a21b8d57f951, Mathematica Policy Research.
    14. Susan Athey & Mohsen Bayati & Nikolay Doudchenko & Guido Imbens & Khashayar Khosravi, 2021. "Matrix Completion Methods for Causal Panel Data Models," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1716-1730, October.
    15. Dmitry Arkhangelsky & Guido Imbens, 2023. "Causal Models for Longitudinal and Panel Data: A Survey," Papers 2311.15458, arXiv.org, revised Jun 2024.
    16. Guido Perboli & Mariangela Rosano, 2020. "A Taxonomic Analysis of Smart City Projects in North America and Europe," Sustainability, MDPI, vol. 12(18), pages 1-23, September.
    17. Barrutia, Jose M. & Echebarria, Carmen & Aguado-Moralejo, Itziar & Apaolaza-Ibáñez, Vanessa & Hartmann, Patrick, 2022. "Leading smart city projects: Government dynamic capabilities and public value creation," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    18. Schiavone, Francesco & Paolone, Francesco & Mancini, Daniela, 2019. "Business model innovation for urban smartization," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 210-219.
    19. Taylor K. Odle, 2022. "Free to Spend? Institutional Autonomy and Expenditures on Executive Compensation, Faculty Salaries, and Research Activities," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(1), pages 1-32, February.
    20. Callaway, Brantly & Karami, Sonia, 2023. "Treatment effects in interactive fixed effects models with a small number of time periods," Journal of Econometrics, Elsevier, vol. 233(1), pages 184-208.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:241:y:2022:i:c:s0360544221031583. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.