The effect of broadband infrastructure construction on urban green innovation: Evidence from a quasi-natural experiment in China

Abstract

This study investigates the effect of broadband infrastructure construction on urban green innovation by taking the “Broadband China” exemplary cities policy as a quasi-natural experiment and employing a staggered difference-in-differences model. Using the panel data of 283 Chinese cities, the empirical results show that the “Broadband China” exemplary cities policy had a positive effect on urban green innovation, especially in the eastern and high-grade cities. The policy mainly promoted green innovation through two channels: enhancing the proportion of science and technology expenditure in fiscal expenditures and improving human capital. We further provide insights into the moderating effect on the relationship between the “Broadband China” exemplary cities policy and green innovation. We find that greater environmental regulation and intellectual property protection can strengthen the positive effect of the “Broadband China” exemplary cities policy on green innovation.