ORIGINAL RESEARCH
Does Digital Infrastructure Construction
Serve as a New Engine for Green Sustainable
Innovation? A Quasi-Natural Experiment Based
on the "Broadband China" Pilot Policy
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Brandeis International Business School, Brandeis University, Waltham, United States
Submission date: 2024-08-06
Final revision date: 2024-09-24
Acceptance date: 2024-11-07
Online publication date: 2025-01-22
Corresponding author
Raobin Yan
Brandeis International Business School, Brandeis University, Waltham, United States
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ABSTRACT
The broadband network is driving a new wave of informationization development, and many
countries have prioritized broadband network development as a strategic area of action. It is also seen
as an important initiative to gain a competitive edge in international economic, scientific, technological,
and industrial competition in the new era. Digital infrastructure development, as a crucial driver of
modernization, plays a pivotal role in fostering green and sustainable innovation. This study employs
a quasi-natural experimental approach based on "Broadband China" pilot cities, using a differencein-
differences (DID) model to explore the impact of digital infrastructure development on green and
sustainable innovation in Chinese prefecture-level cities. Research results manifest that the construction
of "Broadband China" significantly promotes green sustainable innovation. The capital deepening effect
brought by large-scale investment and the popularization of high-speed broadband networks greatly
improves information access and dissemination efficiency, optimizes resource allocation, reduces
energy waste, and promotes the R&D and application of green technology. Heterogeneity analysis
reveals that cities with a medium level of openness to the outside world benefit more significantly
from the "Broadband China" policy. From the perspective of resource-dependent cities, the policy
significantly promotes green and sustainable innovation in mature and non-resource-dependent cities.
Mechanism analysis indicates that "Broadband China" fosters green and sustainable innovation through
enhanced digitalization and improved energy efficiency, while unemployment rates negatively moderate
the relationship between "Broadband China" and green sustainable innovation.