Does the construction of network infrastructure reduce environmental pollution?-evidence from a quasi-natural experiment in "Broadband China".

Abstract

This paper discusses the effect of network infrastructure on environmental pollution reduction and the realization mechanism behind it. Based on the panel data of 285 cities in China from 2005 to 2019, this study regards the “Broadband China” pilot policy as a quasi-natural experiment to clarify the pollution emission reduction effect of network infrastructure construction through differences-in-differences method and other methods. The research results show the following: (1) The Broadband China pilot policy has reduced environmental pollution, that is, the construction of network infrastructure has the effect of environmental pollution reduction. The conclusion is still established after a series of robustness tests such as parallel trend test, placebo test, and instrumental variable method. Through the heterogeneity test, it is found that the pollution reduction effect of network infrastructure construction is more obvious in non-resource-based cities, first and second tier cities, and cities in the eastern region (2). The construction of network infrastructure plays a restraining role on local environmental pollution. Due to the insufficient level of regional linkage and the siphon effect of pilot cities, the spatial spillover characteristics of the pollution reduction effect are not obvious (3). The mechanism of action shows that green innovation is an important mediating effect mechanism for network infrastructure construction to reduce environmental pollution. Cities in regions with high degree of marketization and environmental regulation can strengthen the effect of network infrastructure construction on environmental pollution reduction. The research conclusions are conducive to accelerating the development of the digital economy represented by the construction of network infrastructure and provide a useful reference for promoting the level of environmental pollution reduction and achieving high-quality development.