The carbon emission reduction effect of digital infrastructure development: Evidence from the broadband China policy

Abstract

Digital technologies are a key driver of carbon peaking and carbon neutrality. However, as the physical foundation supporting digital technology, how digital infrastructure affects carbon emissions is unclear. Based on the panel data from 2008 to 2019, this paper examines the impact of the Broadband China Policy on carbon emissions by adopting a multi-period difference-in-differences (DID) method. The empirical findings indicate that, first, digital infrastructure development plays a significant role in reducing carbon emissions in China. Second, the Broadband China Policy significantly reduces carbon emissions especially in China's low-carbon emission regions, high-level digitization regions, and non-resource-cursed regions. Third, the implementation of the Broadband China Policy facilitates carbon emissions reduction through the promotion of green technology progress, optimization of industrial structures, green transformation of residents' lifestyles, and electrification of energy mix. Finally, the Broadband China Policy has a positive spatial spillover effect on the carbon intensity in the surrounding regions of pilot cities, but it has no significant effect on the total carbon emissions and per capita carbon emissions in the surrounding regions. The results provide important insights for digital infrastructure construction to achieve a win-win situation for economic development and emission reduction.