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Promoting Cleaner Industry: Assessing the Impact of Smart City Pilot Policies in China within the Context of Knowledge-Based Economic Dynamics

Author

Listed:
  • Wenhui Luo

    (Zhejiang University of Technology)

  • Peiling Yang

    (Zhejiang University of Technology)

  • Zhenning Zhu

    (Zhejiang University of Technology)

  • Fengwei Ying

    (Zhejiang University of Technology)

  • Zihan Lin

    (Zhejiang University of Technology)

Abstract

The impact of Smart City Pilot (SCP) policies on mitigating industrial pollution in urban areas remains a topic of ongoing debate in existing literature. This study systematically examines the influence of SCP initiatives on urban industrial pollution, using three waves of SCP implementation in China as a quasi-natural experiment. Employing the time-varying difference-in-differences method and a spatial econometric model, the research investigates the efficacy of SCP in reducing industrial pollution based on a panel dataset comprising 259 cities in China over the period 2011–2019. The study yields several key findings: A significant downward trend in China’s industrial pollution intensity was observed during the study period. Moreover, SCP not only contributes to the reduction of industrial pollution within local cities but also exerts a suppressive effect on industrial pollution in neighboring cities, attributable to a spatial spillover phenomenon. The reduction in urban industrial pollution through SCP is realized via the mechanism of advancing industrial structure. Heterogeneity analysis reveals that SCP’s most substantial inhibitory effect, with the largest marginal contribution, is observed in cities characterized by lower levels of digital economy development, smaller to medium-sized populations, and those located in the northeastern regions of China. These findings enrich the research perspective on SCP’s influence on sustainable industrial development, offering insights for developing nations like China to achieve a “win–win” scenario of economic growth and environmental enhancement in urban settings.

Suggested Citation

  • Wenhui Luo & Peiling Yang & Zhenning Zhu & Fengwei Ying & Zihan Lin, 2025. "Promoting Cleaner Industry: Assessing the Impact of Smart City Pilot Policies in China within the Context of Knowledge-Based Economic Dynamics," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 6360-6409, June.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-01784-5
    DOI: 10.1007/s13132-024-01784-5
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