Understanding how digital infrastructure construction could promote sustainable development

Abstract

Progress made in environmental protection may negatively affect regional socioeconomic development, reducing or impairing the ability of local economic systems to defend against external shocks, culminating in weakened economic resilience. Implementing carbon abatement programs without risking economic resilience is therefore an urgent problem for the international community, especially for its emerging national economies. Digital infrastructure construction (DIC), as a driving force of technological progress and structural transformation, may offer a viable solution to that problem. Here, we used county-level data for China, the biggest emerging economy in the world, to investigate whether and how Smart City Pilot policy (SCP, a policy close to DIC) has lowered regional carbon emissions and influenced economic resilience. We find that the SCP could significantly promote carbon abatement goals, and this result is robust under several tests. Further, chain-based mediating effect analysis revealed that the SCP's beneficial impact could have arisen by first promoting innovation and then productivity, and public concern acting as a stressor that pressures officials to engage in environmental governance. Furthermore, our results show the SCP is capable of bolstering regional economic resilience, and could even offset or negate the adverse effects of strict environmental regulation on that resilience. However, the positive effects of the SCP on carbon abatement in China's developed counties, or ones located in a resources-based city, were not significant. Altogether, our empirical results highlight how DIC can serve as a way to help achieve sustainable development, but more studies on its contributing role are clearly needed.