Does new-type infrastructure improve total factor carbon productivity? Experimental evidence from China

Abstract

The implementation of new-type infrastructure plays a crucial role in driving low-carbon economic development in China and worldwide. This work employs fixed-effects model, mediated-effects model, spatial Durbin model, and meta-analysis to thoroughly examine the influence of new-type infrastructure on total factor carbon productivity using panel data of 274 Chinese cities spanning from 2011 to 2021. The findings indicate that: firstly, new-type infrastructure has a notable and beneficial impact on total factor carbon productivity, but there is heterogeneity in resource endowment, city scale, and policy intensity. New-type infrastructure can only promote total factor carbon productivity enhancement in non-resource cities and large cities. Under the influence of smart city policies, new-type infrastructure has a stronger effect on total factor carbon productivity enhancement. Secondly, digital finance and marketization are important ways for new-type infrastructure to improve total factor carbon productivity. Thirdly, via spatial spillover effect, new-type infrastructure may boost total factor carbon productivity not only in the local region but also in places that are spatially connected. Accordingly, this paper offers policy recommendations for the government to encourage the investment and development of new-type infrastructure to support total factor carbon productivity growth.