IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i11p5100-d1670233.html

The Impact of Smart City Construction on PM 2.5 Concentrations: Empirical Analysis from Chinese Counties

Author

Listed:
  • Chenxue Li

    (School of Finance, Harbin University of Commerce, Harbin 150028, China)

  • Yuxin Duan

    (School of Finance, Harbin University of Commerce, Harbin 150028, China)

  • Zhicheng Zhou

    (School of Finance, Harbin University of Commerce, Harbin 150028, China)

  • Shen Zhong

    (School of Finance, Harbin University of Commerce, Harbin 150028, China)

Abstract

Fine particulate matter (PM 2.5 ) pollution poses a major threat to human physical and mental health. Smart cities (SCs) provide innovative paths for PM 2.5 pollution prevention and control through Internet of Things (IoT) monitoring, intelligent transportation optimization, and other technological means. Based on the panel data of 2,141 counties in China between 2006 and 2021, this paper constructs a difference-in-differences with multiple time periods (MDID) to systematically assess the impact of SC on PM 2.5 concentration and analyze its mechanism of action by combining the satellite remote sensing PM 2.5 concentration (PM 2.5 C) and the list of smart city pilots. This study finds the following: (1) SC significantly reduced the PM 2.5 concentration in the test area by about 3.58%. This conclusion was verified through rigorous robustness testing; (2) SC can effectively reduce PM 2.5 C through the innovation effect; (3) High-quality economic development can strengthen the emission reduction effect of SC on PM 2.5 C; (4) The environmental benefits of SC show significant spatial heterogeneity, with the largest PM 2.5 reductions occurring in the western regions (4.3% reduction), followed by regions with mature digital infrastructure and cities in high administrative level cities. The results of this study provide a reference for the regional differentiated implementation of the “14th Five-Year Plan for the Development of Innovative Smarter Cities”, and make targeted recommendations for the synergistic management of air quality under the “dual-carbon” goal.

Suggested Citation

  • Chenxue Li & Yuxin Duan & Zhicheng Zhou & Shen Zhong, 2025. "The Impact of Smart City Construction on PM 2.5 Concentrations: Empirical Analysis from Chinese Counties," Sustainability, MDPI, vol. 17(11), pages 1-26, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:5100-:d:1670233
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/11/5100/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/11/5100/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    2. Chen, Pengyu & Dagestani, Abd Alwahed, 2023. "Urban planning policy and clean energy development Harmony- evidence from smart city pilot policy in China," Renewable Energy, Elsevier, vol. 210(C), pages 251-257.
    3. Xianjuan An & Yanjing Yang & Xinyu Zhang & Xueting Zeng, 2024. "Smarter and Cleaner? The Carbon Reduction Effect of Smart Cities: A Perspective on Green Technology Progress," Sustainability, MDPI, vol. 16(18), pages 1-15, September.
    4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    5. Yang, Shubo & Jahanger, Atif & Hossain, Mohammad Razib, 2023. "How effective has the low-carbon city pilot policy been as an environmental intervention in curbing pollution? Evidence from Chinese industrial enterprises," Energy Economics, Elsevier, vol. 118(C).
    6. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    7. Guo, Qingbin & Wang, Yong & Dong, Xiaobin, 2022. "Effects of smart city construction on energy saving and CO2 emission reduction: Evidence from China," Applied Energy, Elsevier, vol. 313(C).
    8. Jun Rentschler & Nadezda Leonova, 2023. "Global air pollution exposure and poverty," Nature Communications, Nature, vol. 14(1), pages 1-11, December.
    9. Müller, Julian M. & Buliga, Oana & Voigt, Kai-Ingo, 2021. "The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models - A comparison between SMEs and large enterprises," European Management Journal, Elsevier, vol. 39(3), pages 333-343.
    10. Baker, Andrew C. & Larcker, David F. & Wang, Charles C.Y., 2022. "How much should we trust staggered difference-in-differences estimates?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 370-395.
    11. Chengfeng Yu & Jiyu Yu & Da Gao, 2024. "Smart Cities and Greener Futures: Evidence from a Quasi-Natural Experiment in China’s Smart City Construction," Sustainability, MDPI, vol. 16(2), pages 1-28, January.
    12. William Hill & Emilia L. Lim & Clare E. Weeden & Claudia Lee & Marcellus Augustine & Kezhong Chen & Feng-Che Kuan & Fabio Marongiu & Edward J. Evans & David A. Moore & Felipe S. Rodrigues & Oriol Pich, 2023. "Lung adenocarcinoma promotion by air pollutants," Nature, Nature, vol. 616(7955), pages 159-167, April.
    13. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    Full references (including those not matched with items on IDEAS)

    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. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
    2. Yuheng Wang & Sihan Chen & Zhicheng Zhou & Shen Zhong, 2025. "Has the Construction of National Intellectual Property Model Cities Reduced PM 2.5 Concentration and Standard Deviation? New Evidence from Counties in China," Sustainability, MDPI, vol. 17(18), pages 1-29, September.
    3. Mark Kattenberg & Bas Scheer & Jurre Thiel, 2023. "Causal forests with fixed effects for treatment effect heterogeneity in difference-in-differences," CPB Discussion Paper 452, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Athey, Susan & Imbens, Guido W., 2022. "Design-based analysis in Difference-In-Differences settings with staggered adoption," Journal of Econometrics, Elsevier, vol. 226(1), pages 62-79.
    5. Zhong, Shen & Zhou, Zhicheng & Gao, Wei, 2025. "Impact of regional finance reform and innovation policies on green innovation in pilot cities: A quasi-natural experiment," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 888-911.
    6. Xu, Mengmeng & Wang, Zihao, 2024. "Political spillover effects of environmental policy: Evidence from China," Energy Economics, Elsevier, vol. 140(C).
    7. de Chaisemartin, Clément & D’Haultfœuille, Xavier, 2023. "Two-way fixed effects and differences-in-differences estimators with several treatments," Journal of Econometrics, Elsevier, vol. 236(2).
    8. Ting Ye & Luke Keele & Raiden Hasegawa & Dylan S. Small, 2020. "A Negative Correlation Strategy for Bracketing in Difference-in-Differences," Papers 2006.02423, arXiv.org, revised Jun 2022.
    9. Julie Gilles de la Londe & Anissa Afrite & Julien Mousquès, 2023. "How does the quality of care for type 2 diabetic patients benefit from GPs-nurses’ teamwork? A staggered difference-in-differences design based on a French pilot program," International Journal of Health Economics and Management, Springer, vol. 23(3), pages 433-466, September.
    10. Luis Alvarez & Bruno Ferman, 2020. "Inference in Difference-in-Differences with Few Treated Units and Spatial Correlation," Papers 2006.16997, arXiv.org, revised Apr 2023.
    11. Wang, Lisha & Pan, Minjie & Qian, Xinlei & Lv, Kangjuan, 2025. "Do specialized courts matter? Environmental judiciary and corporate emissions in China," Energy Policy, Elsevier, vol. 199(C).
    12. Li, Tongxia & Ang, Tze Chuan ‘Chewie’ & Lu, Chun, 2023. "Employment protection and the provision of trade credit," Journal of Banking & Finance, Elsevier, vol. 155(C).
    13. José M. Alonso & Rhys Andrews, 2025. "Does not‐for‐profit corporatization of local public services improve performance?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 44(2), pages 612-631, March.
    14. Luo, Shiyue & Lu, Mingyue & Ye, Jinhui & Guo, Yuying & Hao, Yu, 2025. "Nurturing finance and harvesting intelligence: The green growth of urban industrial intelligence fueled by green finance," Research in International Business and Finance, Elsevier, vol. 80(C).
    15. Shao, Cuiying & Liu, Zhanyu, 2024. "Advancing green innovation through the establishment of data regulatory bodies: Insights from the Big Data Bureau in China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 308-325.
    16. Christian Alemán-Pericón & Alexander Ludwig & Christopher Busch & Raül Santaeulàlia-Llopis, 2022. "A Stage-Based Identification of Policy Effects," Working Papers 1369, Barcelona School of Economics.
    17. Dröes, Martijn I. & Koster, Hans R.A., 2021. "Wind turbines, solar farms, and house prices," Energy Policy, Elsevier, vol. 155(C).
    18. Jun, Xiao & Ai, Junwei & Zheng, Lingfeng & Lu, Meiting & Wang, Jianye, 2024. "Impact of information technology and industrial development on corporate ESG practices: Evidence from a pilot program in China," Economic Modelling, Elsevier, vol. 139(C).
    19. Yuan, Huaxi & Zou, Longhui & Feng, Yidai, 2023. "How to achieve emission reduction without hindering economic growth? The role of judicial quality," Ecological Economics, Elsevier, vol. 209(C).
    20. Guo, Xue & Cheng, Aaron & Pavlou, Paul A., 2025. "Skill-biased technical change, again? Online gig platforms and local employment," LSE Research Online Documents on Economics 124538, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:17:y:2025:i:11:p:5100-:d:1670233. 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.