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Digital infrastructure’s environmental Paradox? Evidence from China’s national big data comprehensive pilot zones

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  • Wang, Wenchao
  • Liu, Yang
  • Dong, Xiucheng

Abstract

The rapid advancement of digital infrastructure, exemplified by big data centers, has driven high-quality economic growth, yet the emissions generated during their construction and operation render their impact on urban environmental quality uncertain. Utilizing panel data from 273 Chinese prefecture-level cities between 2011 and 2022, this study leverages the establishment of the National Big Data Comprehensive Pilot Zones (BDCPZ) as a quasi-natural experiment and employs a difference-in-differences (DID) model to explore the impact of BDCPZ implementation on urban environmental quality. The results indicate that the establishment of BDCPZ significantly enhances urban environmental quality, with pronounced effects in eastern regions, large cities, and resource-intensive cities. Key drivers are green innovation, energy consumption, human capital development, and strengthened environmental regulations. Moreover, it shows positive spatial spillovers, benefiting neighboring cities. Notably, considerable emissions are generated during the construction and operation of digital infrastructure, but the long-term net effect of BDCPZ remains positive on urban environmental quality. Policy implications underscore the need to promote site-specific BDCPZ construction and minimize emissions during its construction and operation.

Suggested Citation

  • Wang, Wenchao & Liu, Yang & Dong, Xiucheng, 2025. "Digital infrastructure’s environmental Paradox? Evidence from China’s national big data comprehensive pilot zones," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 281-307.
    • Handle: RePEc:eee:ecanpo:v:88:y:2025:i:c:p:281-307
    DOI: 10.1016/j.eap.2025.09.011
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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