Two birds with one stone: could China’s smart city pilot promote energy efficiency and energy equality?

Studying the impact of smart city pilot (SCP) policies on total factor energy efficiency (TFEE) and energy equality (EE) is essential for understanding how innovative urban strategies foster sustainable and inclusive energy use. While prior research has primarily focused on the environmental and economic outcomes of SCP, there is a paucity of quantitative assessments examining its effects on TFEE and EE. This study utilizes data from 277 Chinese cities over the period 2006–2017 to measure TFEE using a non-radial directional distance function approach under non-convex technology assumptions, and EE through the economic contribution coefficient. Subsequently, we employ a staggered difference-in-differences (DID) model to examine whether SCP can generate a "double dividend" by simultaneously enhancing TFEE and EE. We find that (1) SCP has a significant and progressively positive impact on both TFEE and EE. (2) Mechanism analysis implies that SCP influences TFEE and EE through the channels of increased foreign direct investment, green technology innovation, and the development of network infrastructure. Economic agglomeration emerges as a key mechanistic factor in the SCP-EE relationship. (3) Heterogeneity tests suggest that the effects of SCP on TFEE and EE differ across city locations, administrative levels, resource endowment, ICT agglomeration, and city scale. Some policy implications are further proposed accordingly to enhance TFEE and EE.