Does the synergy of the construction of high-speed railways and smart city pilot cut carbon emissions in Chinese cities?

Abstract

The construction of high-speed railways and the smart city pilot (HSR-SCP) demonstrates the synergy of traditional and new infrastructure upgrades, which has a significant influence on the economic transition and green economic growth. However, little study has been conducted on the impact of HSR-SCP synergy on carbon emissions. Applying China's prefecture-level panel data, this paper, therefore, attempts to investigate the effect of HSR-SCP on carbon emissions and uncover its in-depth mechanism through the multi-period difference-in-differences model. Notably, an appropriate instrumental variable for HSR-SCP is introduced to address possible endogeneity. The main conclusions indicate that the construction of HSR-SCP plays an essential role in cutting carbon emissions, which is still valid after adopting the instrumental variable method and some robustness tests. Furthermore, green technology innovation plays a crucial intermediary role in that relationship. Finally, the carbon reduction effect of HSR-SCP is significant in Mid-Eastern China and cities with high population sizes and administrative levels, but not in other cities or regions. The research conclusions demonstrate the significant synergy of traditional and new infrastructure upgrades on carbon reduction and provide an empirical foundation for developing countries to realize low-carbon development through optimizing smart infrastructure and promoting green technology innovation.