IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i9p5583-d809507.html
   My bibliography  Save this article

A Win–Win Opportunity: The Industrial Pollution Reduction Effect of Digital Economy Development—A Quasi-Natural Experiment Based on the “Broadband China” Strategy

Author

Listed:
  • Guanghao Li

    (School of Economics and Management, Fuzhou University, Fuzhou 350108, China)

  • Xiaoliang Zhou

    (School of Economics and Management, Fuzhou University, Fuzhou 350108, China)

  • Zhe Bao

    (School of Economics and Management, Fuzhou University, Fuzhou 350108, China)

Abstract

The digital economy and industrial sustainable development are important issues at this stage. The economic welfare effects of digital economy development have been confirmed by the existing literature, while the impact of digital economy development on industrial pollution emissions remains to be studied. This paper takes the implementation of the “Broadband China” strategy as a quasi-natural experiment, and uses a time-varying difference in difference model (Time-Varying DID) to identify the “industrial pollution reduction effect” of digital economic development. The results show that, (1) digital economy development can significantly reduce industrial SO 2 emission intensity, and this “industrial pollution reduction effect” will be heterogeneous according to the changes in geographical location characteristics, urban scale characteristics, and environmental regulation intensity characteristics; (2) digital economy development can reduce industrial pollution emissions without inhibiting industrial output, and this “industrial pollution reduction effect” is mainly caused by the improvement of energy efficiency and the cleaner transformation of industrial production mode brought by biased technological progress, rather than by the traditional neutral technological progress and end-of-pipe treatment; and (3) that the improvement of industrial basic capacity can significantly enhance the “industrial pollution reduction effect” of digital economy development. In the process of promoting the development of the digital economy, China should consider urban characteristics and improve industrial basic capacity.

Suggested Citation

  • Guanghao Li & Xiaoliang Zhou & Zhe Bao, 2022. "A Win–Win Opportunity: The Industrial Pollution Reduction Effect of Digital Economy Development—A Quasi-Natural Experiment Based on the “Broadband China” Strategy," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5583-:d:809507
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/9/5583/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/9/5583/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Heyman, Fredrik & Sjoholm, Fredrik & Tingvall, Patrik Gustavsson, 2007. "Is there really a foreign ownership wage premium? Evidence from matched employer-employee data," Journal of International Economics, Elsevier, vol. 73(2), pages 355-376, November.
    3. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    4. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(Nov), pages 2-20.
    5. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    6. Ke-Liang Wang & Rui-Rui Zhu & Yun-He Cheng, 2022. "Does the Development of Digital Finance Contribute to Haze Pollution Control? Evidence from China," Energies, MDPI, vol. 15(7), pages 1-21, April.
    7. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    8. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    9. Yu Pei & Yingming Zhu & Suxia Liu & Menglu Xie, 2021. "Industrial agglomeration and environmental pollution: based on the specialized and diversified agglomeration in the Yangtze River Delta," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 4061-4085, March.
    10. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 5(1), pages 3-34.
    11. Chen, Yufen & Liu, Yanni, 2021. "How biased technological progress sustainably improve the energy efficiency: An empirical research of manufacturing industry in China," Energy, Elsevier, vol. 230(C).
    12. Cherniwchan, Jevan, 2017. "Trade liberalization and the environment: Evidence from NAFTA and U.S. manufacturing," Journal of International Economics, Elsevier, vol. 105(C), pages 130-149.
    13. Gruber, Harald, 2019. "Proposals for a digital industrial policy for Europe," Telecommunications Policy, Elsevier, vol. 43(2), pages 116-127.
    14. Petra Moser & Alessandra Voena, 2012. "Compulsory Licensing: Evidence from the Trading with the Enemy Act," American Economic Review, American Economic Association, vol. 102(1), pages 396-427, February.
    15. Jinqi Su & Ke Su & Shubin Wang, 2021. "Does the Digital Economy Promote Industrial Structural Upgrading?—A Test of Mediating Effects Based on Heterogeneous Technological Innovation," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    16. Tan, Ruipeng & Lin, Boqiang & Liu, Xiying, 2019. "Impacts of eliminating the factor distortions on energy efficiency—A focus on China's secondary industry," Energy, Elsevier, vol. 183(C), pages 693-701.
    17. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    18. Li, Ke & Lin, Boqiang, 2018. "How to promote energy efficiency through technological progress in China?," Energy, Elsevier, vol. 143(C), pages 812-821.
    19. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    20. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    21. Hongmei Wen & Jingliang Yue & Jian Li & Xuedan Xiu & Shen Zhong, 2022. "Can digital finance reduce industrial pollution? New evidence from 260 cities in China," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-22, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jing Jin & Duozhang Chen, 2022. "Research on the Impact of the County-to-District Reform on Environmental Pollution in China," Sustainability, MDPI, vol. 14(11), pages 1-12, May.
    2. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    3. Yuqi Zhu & Siwei Shen & Linyu Du & Jun Fu & Jian Zou & Lina Peng & Rui Ding, 2023. "Spatial and Temporal Interaction Coupling of Digital Economy, New-Type Urbanization and Land Ecology and Spatial Effects Identification: A Study of the Yangtze River Delta," Land, MDPI, vol. 12(3), pages 1-27, March.
    4. Yong Hu & Qian Liu, 2023. "Local Digital Economy and Corporate Social Responsibility," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    5. Bei Liu & Yukun Li & Xiaoya Tian & Lipeng Sun & Pishi Xiu, 2023. "Can Digital Economy Development Contribute to the Low-Carbon Transition? Evidence from the City Level in China," IJERPH, MDPI, vol. 20(3), pages 1-19, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laiqun Jin & Xiuyan Liu & Sam Hak Kan Tang, 2021. "High-Technology Zones, Misallocation of Resources among Cities and Aggregate Productivity: Evidence from China," Economics Discussion / Working Papers 21-11, The University of Western Australia, Department of Economics.
    2. Sun, Chuanwang & Zhan, Yanhong & Du, Gang, 2020. "Can value-added tax incentives of new energy industry increase firm's profitability? Evidence from financial data of China's listed companies," Energy Economics, Elsevier, vol. 86(C).
    3. Zhang, Yali & Li, Wenqi & Wu, Feng, 2020. "Does energy transition improve air quality? Evidence derived from China’s Winter Clean Heating Pilot (WCHP) project," Energy, Elsevier, vol. 206(C).
    4. Huang, Xiaoqi & Liu, Wei & Zhang, Zhan & Zou, Xinyu & Li, Pujuan, 2023. "Quantity or quality: Environmental legislation and corporate green innovations," Ecological Economics, Elsevier, vol. 204(PB).
    5. Ramón López & Amparo Palacios, 2014. "Why has Europe Become Environmentally Cleaner? Decomposing the Roles of Fiscal, Trade and Environmental Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 91-108, May.
    6. Gutiérrez, Emilio & Teshima, Kensuke, 2018. "Abatement expenditures, technology choice, and environmental performance: Evidence from firm responses to import competition in Mexico," Journal of Development Economics, Elsevier, vol. 133(C), pages 264-274.
    7. Ling-Yun He & Liang Wang, 2019. "Import Liberalization of Intermediates and Environment: Empirical Evidence from Chinese Manufacturing," Sustainability, MDPI, vol. 11(9), pages 1-15, May.
    8. Rui Ding & Fangcheng Sun, 2023. "Impact of River Chief System on Green Technology Innovation: Empirical Evidence from the Yangtze River Economic Belt," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    9. Regner, Hakan, 2002. "A nonexperimental evaluation of training programs for the unemployed in Sweden," Labour Economics, Elsevier, vol. 9(2), pages 187-206, April.
    10. Qi, Xiulin & Wu, Zhifang & Xu, Jinqing & Shan, Biaoan, 2023. "Environmental justice and green innovation: A quasi-natural experiment based on the establishment of environmental courts in China," Ecological Economics, Elsevier, vol. 205(C).
    11. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Silva Quintero, Edgar, 2016. "How Forced Displacements Caused by a Violent Conflict Affect Wages in Colombia," IZA Discussion Papers 9926, Institute of Labor Economics (IZA).
    12. Li, Zhen & Wu, Baijun & Wang, Danyang & Tang, Maogang, 2022. "Government mandatory energy-biased technological progress and enterprises' environmental performance: Evidence from a quasi-natural experiment of cleaner production standards in China," Energy Policy, Elsevier, vol. 162(C).
    13. Liu, Cenjie & Fang, Jiayu & Xie, Rui, 2021. "Energy policy and corporate financial performance: Evidence from China's 11th five-year plan," Energy Economics, Elsevier, vol. 93(C).
    14. Konstantin Sommer & Henri L.F. de Groot & Franc Klaassen, 2022. "The effects of market integration on pollution: an analysis of EU enlargements," Tinbergen Institute Discussion Papers 22-039/VI, Tinbergen Institute, revised 21 Mar 2023.
    15. Naegele, Helene & Zaklan, Aleksandar, 2019. "Does the EU ETS cause carbon leakage in European manufacturing?," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 125-147.
    16. Ubaldi, Michele & Picchio, Matteo, 2023. "Intergenerational scars: The impact of parental unemployment on individual health later in life," GLO Discussion Paper Series 1271, Global Labor Organization (GLO).
    17. Ling-Yun He & Geng Huang, 2020. "Tariff Reduction and Environment: Evidence from CAFTA and Chinese Manufacturing Firms," Sustainability, MDPI, vol. 12(5), pages 1-25, March.
    18. Yong Geng & Wei Liu & Hanshu Chen & Xinyu Zou, 2023. "The Spillover Effects of Environmental Regulations: A Perspective of Chinese Unregulated Firms' Tax Burden," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 84-111, March.
    19. Tang, Heiwai, 2012. "Labor market institutions, firm-specific skills, and trade patterns," Journal of International Economics, Elsevier, vol. 87(2), pages 337-351.
    20. Guo, Qingbin & Zhong, Jinrong, 2022. "The effect of urban innovation performance of smart city construction policies: Evaluate by using a multiple period difference-in-differences model," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5583-:d:809507. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.