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Does government-driven infrastructure boost green innovation? Evidence of new infrastructure plan in China

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  • Zhang, Fan
  • Wang, Feng
  • Yao, Shujie

Abstract

The role of government-driven investment in improving environmental quality has long been an essential concern of environmental research. Using a spatial difference-in-differences model, this study investigates the influence of government-driven new infrastructure investment on green innovation. Based on a panel dataset of 276 Chinese cities from 2005 to 2019, we find a positive effect of high-speed rail (HSR) and smart city (SC) construction on green innovation. Compared with cities that are unconnected to the HSR network, those that are accessible by HSR experienced a 20.6 % increase in per capita green patents. In addition, being a SC planned by the government is associated with 14.8 % more green patents per capita than other cities. Moreover, government-promoted new infrastructure has significant spatial spillover effects on green innovation in adjacent cities. Regional sensitivity is found in promotional and spatial spillover effects. The findings of our study offer essential insights for developing effective policies for advancing infrastructure modernization and environmental protection simultaneously.

Suggested Citation

  • Zhang, Fan & Wang, Feng & Yao, Shujie, 2024. "Does government-driven infrastructure boost green innovation? Evidence of new infrastructure plan in China," Journal of Asian Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:asieco:v:95:y:2024:i:c:s1049007824001234
    DOI: 10.1016/j.asieco.2024.101828
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