Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy

China aims for high-quality development by balancing energy use and economic growth, leveraging digital infrastructure to foster a resource-efficient, eco-friendly society and boost economic progress. In this context, by using panel data from 279 Chinese cities spanning 2006–2021, this study employs...

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Main Authors: Xianpu Xu, Qiqi Meng, Jing Huang
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/18/5/1072
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author Xianpu Xu
Qiqi Meng
Jing Huang
author_facet Xianpu Xu
Qiqi Meng
Jing Huang
author_sort Xianpu Xu
collection DOAJ
description China aims for high-quality development by balancing energy use and economic growth, leveraging digital infrastructure to foster a resource-efficient, eco-friendly society and boost economic progress. In this context, by using panel data from 279 Chinese cities spanning 2006–2021, this study employs a multi-phase difference-in-differences (DID) technique to disclose how the Broadband China Pilot Policy (BCPP) affects energy consumption. The results reveal that the BCPP can greatly lower urban energy consumption, which is further validated by robustness tests, including PSM-DID estimation, Bacon decomposition, and placebo testing. Heterogeneity testing shows the BCPP significantly lowers energy consumption in large, eastern, non-resource-based, and high-digital inclusive finance cities compared to smaller, western, resource-based, and low-digital inclusive finance cities. Furthermore, the mechanism analysis indicates that the BCPP contributes to decreased urban energy use by transforming the industrial structure, enhancing financial growth, and improving green technology innovation. To effectively harmonize energy consumption with urban development, it is recommended to accelerate the advancement of digital infrastructure, tailor the industrial structure to meet local needs, and promote greater financial and green innovation development.
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spelling doaj-art-ba69cca47a2a416e8ca2218caf29f2ad2025-08-20T02:05:09ZengMDPI AGEnergies1996-10732025-02-01185107210.3390/en18051072Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China StrategyXianpu Xu0Qiqi Meng1Jing Huang2School of Business, Xiangtan University, Xiangtan 411105, ChinaSchool of Business, Xiangtan University, Xiangtan 411105, ChinaSchool of Business, Xiangtan University, Xiangtan 411105, ChinaChina aims for high-quality development by balancing energy use and economic growth, leveraging digital infrastructure to foster a resource-efficient, eco-friendly society and boost economic progress. In this context, by using panel data from 279 Chinese cities spanning 2006–2021, this study employs a multi-phase difference-in-differences (DID) technique to disclose how the Broadband China Pilot Policy (BCPP) affects energy consumption. The results reveal that the BCPP can greatly lower urban energy consumption, which is further validated by robustness tests, including PSM-DID estimation, Bacon decomposition, and placebo testing. Heterogeneity testing shows the BCPP significantly lowers energy consumption in large, eastern, non-resource-based, and high-digital inclusive finance cities compared to smaller, western, resource-based, and low-digital inclusive finance cities. Furthermore, the mechanism analysis indicates that the BCPP contributes to decreased urban energy use by transforming the industrial structure, enhancing financial growth, and improving green technology innovation. To effectively harmonize energy consumption with urban development, it is recommended to accelerate the advancement of digital infrastructure, tailor the industrial structure to meet local needs, and promote greater financial and green innovation development.https://www.mdpi.com/1996-1073/18/5/1072BCPPenergy consumptionmulti-phase DID modelindustrial structure upgradingfinancial developmentgreen technology innovation
spellingShingle Xianpu Xu
Qiqi Meng
Jing Huang
Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy
Energies
BCPP
energy consumption
multi-phase DID model
industrial structure upgrading
financial development
green technology innovation
title Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy
title_full Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy
title_fullStr Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy
title_full_unstemmed Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy
title_short Identifying the Impact of New Digital Infrastructure on Urban Energy Consumption: Evidence from the Broadband China Strategy
title_sort identifying the impact of new digital infrastructure on urban energy consumption evidence from the broadband china strategy
topic BCPP
energy consumption
multi-phase DID model
industrial structure upgrading
financial development
green technology innovation
url https://www.mdpi.com/1996-1073/18/5/1072
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AT jinghuang identifyingtheimpactofnewdigitalinfrastructureonurbanenergyconsumptionevidencefromthebroadbandchinastrategy