The Impact of Digital Infrastructure on China's Green Total Factor Productivity: A Quasi-Natural Experiment Based on the “Broadband China” Pilot Policy
by
Xudong Hu
a
,
Sen Wang
a,*
,
Jinpei Cao
a
and
Pu Hao
a
a
School of Economics and Management, Xinjiang University, Urumqi, China
*
Author to whom correspondence should be addressed.
The digital economy has emerged as a crucial driving force for promoting China’s green transformation in the new development phase. The “Broadband China” initiative, a key policy aimed at fostering the digital economy, plays a significant role in enhancing green total factor productivity (GTFP). This paper, based on the "Broadband China" policy and panel data from 283 prefecture-level cities from 2009 to 2022, constructs a theoretical model and employs a multi-period difference-in-differences (DID) method to systematically analyze the impact of digital infrastructure development on urban green total factor productivity (GTFP) and its underlying mechanisms. The findings reveal that the “Broadband China” policy has significantly improved GTFP in pilot cities, with stronger effects observed in economically developed regions and large- to medium-sized cities. Mechanism analysis indicates that technological innovation, industrial structure optimization, and energy conservation and emission reduction are the main pathways through which digital infrastructure promotes the improvement of green total factor productivity (GTFP). The regional heterogeneity analysis reveals that policy effects are more significant in eastern regions and large or medium-sized cities, whereas the effects are relatively weaker in central and western regions and smaller cities. Robustness checks further validate the reliability of the research conclusions.Additionally, this study reveals the critical role of digital infrastructure development in enhancing green total factor productivity and promoting high-quality economic development from both theoretical and empirical perspectives. It provides valuable insights for optimizing digital infrastructure investment strategies and formulating regional development policies.
Hu, X.; Wang, S.; Cao, J.; Hao, P. The Impact of Digital Infrastructure on China's Green Total Factor Productivity: A Quasi-Natural Experiment Based on the “Broadband China” Pilot Policy. Journal of Information Economics, 2024, 2, 39. https://doi.org/10.58567/jie02040003
AMA Style
Hu X, Wang S, Cao J, Hao P. The Impact of Digital Infrastructure on China's Green Total Factor Productivity: A Quasi-Natural Experiment Based on the “Broadband China” Pilot Policy. Journal of Information Economics; 2024, 2(4):39. https://doi.org/10.58567/jie02040003
Chicago/Turabian Style
Hu, Xudong; Wang, Sen; Cao, Jinpei; Hao, Pu 2024. "The Impact of Digital Infrastructure on China's Green Total Factor Productivity: A Quasi-Natural Experiment Based on the “Broadband China” Pilot Policy" Journal of Information Economics 2, no.4:39. https://doi.org/10.58567/jie02040003
APA style
Hu, X., Wang, S., Cao, J., & Hao, P. (2024). The Impact of Digital Infrastructure on China's Green Total Factor Productivity: A Quasi-Natural Experiment Based on the “Broadband China” Pilot Policy. Journal of Information Economics, 2(4), 39. https://doi.org/10.58567/jie02040003
Article Metrics
Article Access Statistics
References
Berlemann, M., and Wesselhöft, J. E. (2014). Estimating aggregate capital stocks using the perpetual inventory method: A survey of previous implementations and new empirical evidence for 103 countries. Review of Economics, 65(1), 1-34. https://doi.org/10.1515/roe-2014-0102
Borgman, C. L. (2010). Scholarship in the digital age: Information, infrastructure, and the Internet. MIT press. https://doi.org/10.7551/mitpress/7434.001.0001
Chang, K., Zhang, H., and Li, B. (2024). The impact of digital economy and industrial agglomeration on the changes of industrial structure in the Yangtze River Delta. Journal of the Knowledge Economy, 15(2), 9207-9227. https://doi.org/10.1007/s13132-023-01448-w
Du, Z. Y., and Wang, Q. (2024). Digital infrastructure and innovation: Digital divide or digital dividend?. Journal of Innovation and Knowledge, 9(3), 100542. https://doi.org/10.1016/j.jik.2024.100542
Färe, R., Grosskopf, S., Norris, M., et al. (1994). Productivity growth, technical progress, and efficiency change in industrialized countries. The American economic review, 66-83. https://doi.org/10.1093/acprof:oso/9780195183528.003.0005
Feng, C., Huang, J. B., and Wang, M. (2018). Analysis of green total-factor productivity in China's regional metal industry: A meta-frontier approach. Resources Policy, 58, 219-229. https://doi.org/10.1016/j.resourpol.2018.05.008
Fu, L., Zhang, S., and Guo, S. (2024). A Study on the Changes of Green Total Factor Productivity in Chinese Cities under Resource and Environmental Constraints. Sustainability, 16(4), 1658. https://doi.org/10.3390/su16041658
Hanseth, O., Monteiro, E., and Hatling, M. (1996). Developing Information Infrastructure: The Tension Between Standardization and Flexibility. Science, Technology, and Human Values, 21(4), 407-426. https://doi.org/10.1177/016224399602100402
Hao, X., Li, Y., Ren, S., Wu, H., and Hao, Y. (2023). The role of digitalization on green economic growth: Does industrial structure optimization and green innovation matter?. Journal of environmental management, 325, 116504. https://doi.org/10.1016/j.jenvman.2022.116504
Hao, X., Wang, X., Wu, H., and Hao, Y. (2023). Path to sustainable development: Does digital economy matter in manufacturing green total factor productivity?. Sustainable Development, 31(1), 360-378. https://doi.org/10.1002/sd.2397
Henfridsson, O., and Bygstad, B. (2013). The generative mechanisms of digital infrastructure evolution. MIS quarterly, 907-931. https://doi.org/10.25300/misq/2013/37.3.11
Hong, M., Tian, M., and Wang, J. (2023). The impact of digital economy on green development of agriculture and its spatial spillover effect. China Agricultural Economic Review, 15(4), 708-726. https://doi.org/10.1108/caer-01-2023-0004
Jin, X., Ma, B., and Zhang, H. (2023). Impact of fast internet access on employment: Evidence from a broadband expansion in China. China Economic Review, 81, 102038. https://doi.org/10.1016/j.chieco.2023.102038
Katz, M. L., and Shapiro, C. (1994). Systems competition and network effects. Journal of economic perspectives, 8(2), 93-115. https://doi.org/10.1257/jep.8.2.93
Kirschning, R., and Mrożewski, M. (2024). Revisiting the knowledge spillover paradox: the impact of infrastructure. Small Business Economics, 63(1), 1-20. https://doi.org/10.1007/s11187-023-00833-8
Lee, C. C., and Lee, C. C. (2022). How does green finance affect green total factor productivity? Evidence from China. Energy economics, 107, 105863. https://doi.org/10.1016/j.eneco.2022.105863
Lee, C. C., He, Z. W., and Yuan, Z. (2023). A pathway to sustainable development: Digitization and green productivity. Energy Economics, 124, 106772. https://doi.org/10.1016/j.eneco.2023.106772
Li, W., Wang, S., and Deng, X. (2024). The impact of digital finance on business environment: Mediating role of industrial structural upgrading and moderating role of digital infrastructure. Finance Research Letters, 67, 105775. https://doi.org/10.1016/j.frl.2024.105775
Liu, Y., Yang, Y., Li, H., and Zhong, K. (2022). Digital economy development, industrial structure upgrading and green total factor productivity: Empirical evidence from China’s cities. International Journal of Environmental Research and Public Health, 19(4), 2414. https://doi.org/10.3390/ijerph19042414
Lyu, Y., Wang, W., Wu, Y., and Zhang, J. (2023). How does digital economy affect green total factor productivity? Evidence from China. Science of the Total Environment, 857, 159428. https://doi.org/10.1016/j.scitotenv.2022.159428
Norton, S. W. (1992). Transaction costs, telecommunications, and the microeconomics of macroeconomic growth. Economic Development and cultural change, 41(1), 175-196. https://doi.org/10.1086/452002
Ren, S., Hao, Y., Xu, L., Wu, H., and Ba, N. (2021). Digitalization and energy: How does internet development affect China's energy consumption?. Energy Economics, 98, 105220. https://doi.org/10.1016/j.eneco.2021.105220
Tang, K., and Yang, G. (2023). Does digital infrastructure cut carbon emissions in Chinese cities?. Sustainable Production and Consumption, 35, 431-443. https://doi.org/10.1016/j.spc.2022.11.022
Teng, S. Y., Touš, M., Leong, W. D., How, B. S., Lam, H. L., and Máša, V. (2021). Recent advances on industrial data-driven energy savings: Digital twins and infrastructures. Renewable and Sustainable Energy Reviews, 135, 110208. https://doi.org/10.1016/j.rser.2020.110208
Wang, Q., Xu, W., Huang, Y., and Yang, J. (2022). The effect of fast Internet on employment: Evidence from a Large Broadband Expansion Program in China. China and World Economy, 30(3), 100-134. https://doi.org/10.1111/cwe.12420
Wu, H., Hao, Y., Ren, S., Yang, X., and Xie, G. (2021). Does internet development improve green total factor energy efficiency? Evidence from China. Energy Policy, 153, 112247. https://doi.org/10.1016/j.enpol.2021.112247
Wu, L., and Zhang, Z. (2020). Impact and threshold effect of Internet technology upgrade on forestry green total factor productivity: Evidence from China. Journal of Cleaner Production, 271, 122657. https://doi.org/10.1016/j.jclepro.2020.122657
Yang, J., Li, L., Liang, Y., Wu, J., Wang, Z., Zhong, Q., and Liang, S. (2022). Sustainability performance of global chemical industry based on green total factor productivity. Science of the Total Environment, 830, 154787. https://doi.org/10.1016/j.scitotenv.2022.154787
Zhang, Y., and Dilanchiev, A. (2022). Economic recovery, industrial structure and natural resource utilization efficiency in China: effect on green economic recovery. Resources Policy, 79, 102958. https://doi.org/10.1016/j.resourpol.2022.102958
Zhu, L., Luo, J., Dong, Q., Zhao, Y., Wang, Y., and Wang, Y. (2021). Green technology innovation efficiency of energy-intensive industries in China from the perspective of shared resources: Dynamic change and improvement path. Technological Forecasting and Social Change, 170, 120890. https://doi.org/10.1016/j.techfore.2021.120890