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The Impact of Internet Development on Urban Eco-Efficiency—A Quasi-Natural Experiment of “Broadband China” Pilot Policy

Author

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  • Xiaoying Zhong

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China
    Business School, Nanfang College Guangzhou, Guangzhou 510970, China)

  • Guanghai Liu

    (School of Management, Guangzhou University, Guangzhou 510006, China)

  • Peng Chen

    (Industry and Planning Research Institute, China Academy of Information and Communications Technology, Guangzhou 510030, China)

  • Kaili Ke

    (School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China)

  • Ruhe Xie

    (School of Management, Guangzhou University, Guangzhou 510006, China)

Abstract

Based on the panel data of 285 prefecture-level cities and above in China from 2005 to 2019, this paper takes the “Broadband China” pilot policy as a quasi-natural experiment and evaluates the impact of Internet development on urban eco-efficiency (symbolized by the “Broadband China” policy) by constructing multi-period difference-in-difference (DID) and spatial DID models. Results show that: the “Broadband China” pilot policy significantly improves the urban eco-efficiency: the eco-efficiency in pilot cities is about 16.8% higher than that in other cities. The results remain consistent after testing for robustness, including using estimation methods, excluding the sample of key cities, changing core explanatory variables, and introducing instrumental variables. Next, the influence of the “Broadband China” pilot policy on eco-efficiency is characterized by significant regional heterogeneity: Internet development significantly improves the eco-efficiency in the central, eastern and northeastern regions that are economically more developed and not resource-dependent. In contrast, this effect is not obvious in the western region that is economically less developed and resource-dependent. Moreover, the influencing mechanism of Internet development on eco-efficiency suggests that the “Broadband China” strategy boosts urban eco-efficiency by increasing the Internet penetration rate, improving technological innovation capacity, and upgrading the industrial structure. In addition, results from the spatial DID models indicate that the “Broadband China” pilot policy improves the eco-efficiency in local cities and significantly enhances that in neighboring cities. Based on this, this paper puts forward some suggestions regarding promoting new network infrastructure construction and differentiating development policies to fit local conditions.

Suggested Citation

  • Xiaoying Zhong & Guanghai Liu & Peng Chen & Kaili Ke & Ruhe Xie, 2022. "The Impact of Internet Development on Urban Eco-Efficiency—A Quasi-Natural Experiment of “Broadband China” Pilot Policy," IJERPH, MDPI, vol. 19(3), pages 1-23, January.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:3:p:1363-:d:734337
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    References listed on IDEAS

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    2. Hao, Xiaoli & Wen, Shufang & Xue, Yan & Wu, Haitao & Hao, Yu, 2023. "How to improve environment, resources and economic efficiency in the digital era?," Resources Policy, Elsevier, vol. 80(C).
    3. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.
    4. Wang, Chong & Wang, Lei, 2024. "Does broadband infrastructure promote urban innovation? Evidence from “Broadband China” demonstration policy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 349-362.
    5. Sun, Xiaoyan & Ding, Waverly & Xie, Xuanli, 2024. "The Internet and the gender gap in entrepreneurship: Evidence from China," Journal of Business Venturing, Elsevier, vol. 39(5).
    6. Kangjuan Lv & Jiaqi Li & Ye Zhao, 2023. "Can Internet Construction Promote Urban Green Development? A Quasi-Natural Experiment from the “Broadband China”," IJERPH, MDPI, vol. 20(6), pages 1-21, March.
    7. Qian Liu & Yiheng You, 2023. "FinTech and Green Credit Development—Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    8. Lingyue Qiu, 2023. "Does Internet Infrastructure Construction Improve Corporate Green Innovation? Evidence from China," Sustainability, MDPI, vol. 15(1), pages 1-26, January.

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