The Impacts of Smart City Construction on Carbon Total Factor Productivity: Empirical Evidence from China

Abstract

Abstract Today, low-carbon development and smart city pilots are prevalent. Against this backdrop, an urgent need exists to clarify the impact of smart city construction (SCC) on low-carbon development. However, studies on the low-carbon development effects of SCC remain scarce. Therefore, this in-depth study focuses on China, the world’s largest developing country, to examine the role of SCC in promoting low-carbon development. First, we calculate the carbon total factor productivity (CTFP) of 182 prefecture-level cities in China using the slacks-based global Malmquist–Luenberger index. Second, to empirically examine the impact of SCC on CTFP, we employ a multi-period difference-in-difference (DID) model and a machine learning–based propensity-score matching DID (PSM-DID) model. The results reveal that SCC significantly enhances CTFP and low-carbon technological efficiency, while its impact on low-carbon technological progress is nonsignificant. Mechanism tests indicate that SCC can improve CTFP through the following three channels: green technological innovation, industrial structure upgrading, and resource allocation. Heterogeneity tests indicate that all three batches of SCC improve CTFP, and that the positive effect of the third batch is greater than that of the first and second batches. Furthermore, the CTFP promotion effect of SCC is stronger in megacities and cities in the Central region. Finally, we propose relevant policy implications.