Smart City Construction: An Accelerator for Energy Savings and Emission Reductions in China?

The study investigates the effects of smart city pilot policy (SCPP) on energy-saving and emissions-reduction (ESER) in urban areas of China. Using smart pilot cities in three batches in China since 2012 as quasi-natural experimental subjects and the time-varying Difference-in-Differences (DID) method, the study reveals that the ESER ramifications stemming from the implementation of SCPP manifest themselves as follows: energy saving increased by 1.7%, emission decreased by 5.3%, and the effects continue to enhance over time. This conclusion is still robust in multi-dimensional situations such as the placebo test and propensity score matching with Difference-in-Differences (PSM-DID). In addition, the ESER effect of SCPP has a significant dynamic effect and spatial spillover effect. The mechanism analysis reveals that smart cities can achieve ESER through industrial restructuring (front-prevention), energy efficiency improvement (process control), and green technology innovation (end treatment). Further heterogeneity analysis indicates that ESER effects of SCPP are more significant in central cities, non-old industrial-based cities, and non-resource-based cities. The study demonstrates the significance of smart city construction in achieving ESER goals from the perspective of a low-carbon economy and provides valuable insights for the coordinated development of intelligent, energy-saving, low-carbon, and green cities in developing countries.