Effect of Broadband Infrastructure on Rural Household CO2 Emissions in China: A Quasi-Natural Experiment of a “Broadband Village”

Abstract

This paper explores how broadband infrastructure affects rural household carbon dioxide emissions (HCE). Based on the Environmental Kuznets curve hypothesis, a quasi-natural experiment of a “Broadband Village” (B&V) in China is conducted. Panel data from 9,790 rural households were collected as part of the China Family Finance Survey (CHFS). The consumer lifestyle approach was used to calculate HCE and a Difference-in-Differences (DID) model was used to analyze the impact of a B and V pilot project on rural HCE. The results of DID model showed that B and V significantly increases rural HCE, with an influencing coefficient 1.7. Subsequently, Threshold Model was utilized to examine the nonlinear relationship between household broadband penetration and rural HCE. The results revealed the threshold effect between rural household broadband penetration and rural HCE. Namely, the growth effect of B and V to rural HCE would be much weaker, if rural household broadband penetration goes above a threshold level, 31.32%. Our analysis provides important insights for policymakers to formulate digital village and income redistribution policies to support rural carbon dioxide (CO2) emissions reductions.