1. Introduction
Currently, China has become a major energy consumer and carbon emitter in the world. China’s carbon emissions reached 11.47 billion tons in 2021, more than twice that of the United States and nearly four times that of the European Union, and have not reached the peak yet. With the rapid development of industrialization and urbanization, the rigid demand for energy consumption in China is still strong. The insufficient technological capacity of enterprises in digital transformation and the high dependence on resources of high-polluting industries restrict the development process of China’s green economy. Therefore, how to reduce carbon emissions and mitigate global warming in China has become the focus of world attention. In September 2020, the Chinese government promised the world to achieve the “double carbon” goal, that is, carbon dioxide emissions should strive to reach the peak by 2030, and strive to achieve carbon neutrality by 2060. The double carbon goal has become one of the important goals of China’s economic development in the future, which puts forward higher requirements for energy conservation and emission reduction.
According to the literature review, scholars have done a lot of research on how to achieve energy conservation and emission reduction, mostly discussing the channels to achieve energy conservation and emission reduction from institutional factors, energy efficiency, carbon emission policies and other aspects [
1,
2,
3]. According to the externality theory, when there are externalities, people’s private costs and social costs, and private benefits and social benefits in economic activities are inconsistent, which leads to the distortion of resource allocation in economic activities and the failure to achieve Pareto Optimization. In the case of the increasing scarcity of environmental resources, environmental externalities cause enterprises to lack the motivation to reduce the externalities of environmental problems. Although environmental policy constraints and institutional construction have played a positive role in energy conservation and emission reduction, enterprises may adopt various ways to evade environmental regulation [
4,
5]. Green technology has become an important means to reduce carbon emissions, but most green technology innovations focus on end-of-pipe governance, resulting in the lack of green production solutions throughout the life cycle.
In recent years, with the wide application of information and communication technology (ICT) and the profound impact of digital technology on traditional industries, more and more scholars have begun to pay attention to the impact of digital technology on energy conservation and emission reduction in the whole life cycle production. Xu and Zhong [
6] found that ICT capital can alleviate the growth of energy consumption and carbon emissions caused by income inequality, and contribute to the coordinated development of economic, energy and environmental goals. Wu et al. [
7] found that the development of the Internet significantly promoted the efficiency of energy conservation and emission reduction. Zhang et al. [
8] found that the digital economy promotes the energy conservation and emission reduction of heavily polluting enterprises by improving green technology innovation ability, alleviating financing constraints and promoting market competition. In addition, some studies also discussed the relationship between the digital economy and energy consumption intensity, enterprise environmental performance and so on [
9,
10,
11,
12,
13]. Linking the digital economy enabled by the Internet and ICT with energy consumption, the rapid development of the digital economy can be regarded as an effective strategy to reduce carbon emissions [
14,
15]. It helps to promote energy saving and emission reduction in the whole life cycle production, and provides a new research perspective for sustainable development and carbon emission reduction in China.
However, there may be two difficulties in studying the relationship between the digital economy and energy efficiency and carbon emissions. First, from the perspective of an indicator measurement, it is difficult to accurately measure the scale of the digital economy. Most of the existing studies are based on the comprehensive evaluation of regional Internet development, digital finance, e-commerce and other indicators [
8,
16]. Different indicators or data sources may lead to large differences in results. Second, from the perspective of reality, the failure rate of digital transformation is high, so it is difficult to accurately estimate the contribution of the digital economy to carbon emissions. According to the International Data Center (IDC) survey, 50% of China’s top 1000 enterprises take digital transformation as the core of their corporate strategy, while the failure rate of digital transformation reaches 70–80%. McKinsey’s research report (2018) also pointed out that the success rate of digital transformation of enterprises in high-tech, media, telecommunications and other fields is not more than 26%, while the success rate of digital transformation of enterprises in traditional industries such as oil, automobile, pharmaceutical and so on is only 4–11%. To solve the above research difficulties, this paper attempts to explore the impact of energy conservation and emission reduction from the perspective of network infrastructure construction. On the one hand, network infrastructure construction is the basis and key to promote the development of the digital economy and the digital transformation of enterprises. On the other hand, the focus of the “Broadband China” policy is to strengthen the network infrastructure construction, which can provide a quasi-natural experiment for this study.
Based on existing research, this paper discusses whether the construction of network infrastructure can affect the effect of energy conservation and emission reduction. The main innovation points are as follows. First, this paper discusses the influencing factors of energy conservation and emission reduction from the perspective of network infrastructure construction, providing a new perspective for the realization of China’s dual-carbon goal. Second, this paper uses the quasi-natural experiment of “Broadband China” policy to analyze the impact of network infrastructure construction on energy conservation and emission reduction through the double difference model, which solves the endogenous problem. Third, this paper analyzes the influence mechanism of network infrastructure construction on energy conservation and emission reduction from both micro and macro aspects, and deepens the relevant research in this field.
The next arrangement of this paper is as follows. The second part introduces the policy background of “Broadband China” and puts forward the research hypotheses of this paper on the basis of combing the existing literature. The third part is econometric model construction and the selection of variables. The fourth part uses the “Broadband China” policy to empirically test how network infrastructure construction affects the effect of energy conservation and emission reduction, and carries on mechanism analysis and heterogeneity analysis. The fifth part is related discussion. The sixth part is the conclusion of this paper and prospects of future research.
2. Theory and Research Hypotheses
2.1. Network Infrastructure and “Broadband China” Policy Background
The network infrastructure mainly includes the hardware infrastructure related to the information transmission system and the software infrastructure such as the network platform and service application built on this basis, which can provide technical support and services for the digitization, networking and intelligent upgrading of traditional departments such as transportation, energy, manufacturing, etc. From the perspective of economics, the construction of network infrastructure has the characteristics of basic and quasi-public goods. Fundamentally, network infrastructure can create value for the production and operation of all goods and services, such as reducing transaction costs [
17], the long tail effect [
18] and the network effect [
19]. Similar to public goods, the services provided by network infrastructure are relatively non-competitive and non-exclusive, so they are generally quasi-public goods.
In order to solve the problems of slow network speed and unbalanced regional networks, and to further promote the construction and development of network infrastructure, the State Council of China issued the “Broadband China” Strategy and Implementation Plan in August 2013. Since then, broadband network construction has become a national strategy. Subsequently, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the Administrative Measures for the Establishment of “Broadband China” Demonstration Cities (Urban Agglomerations) (hereinafter referred to as the Measures). According to household broadband access capacity, broadband penetration rate, mobile phone penetration rate and broadband user penetration rate and other indicators, 120 “Broadband China” demonstration cities (urban agglomerations) were selected in 2014, 2015 and 2016.
The Measures clearly pointed out that “Broadband China” demonstration cities (urban agglomerations) refer to cities (urban agglomerations) with good broadband development foundation, which have achieved a significant improvement in the development level of broadband in the region through the creation of demonstration, and whose overall broadband development level and development model play a greater exemplary and leading role for similar regions in the country. The key points of broadband network construction in the demonstration city include improving the speed and application level of the broadband network, promoting the continuous improvement of the broadband network industrial chain, enhancing the security guarantee capacity of the broadband network and so on. The demonstration city is a typical constructive pilot city, which puts forward higher requirements for the construction of network infrastructure of the pilot city, and also provides a good quasi-natural experimental basis for this article to analyze the impact of network infrastructure construction on energy conservation and emission reduction.
2.2. Direct Impact of Network Infrastructure Construction on Energy Conservation and Emission Reduction
The idea of a transaction cost was first proposed by Coase (1937) [
20], and then he introduced transaction cost and property rights into economic analysis. According to the transaction cost theory, both parties may face higher transaction costs in the case of asymmetric information, which hinders the production and operation activities to some extent. The application of network information technology plays a significant role in reducing transaction costs in transnational trade and enterprise operation [
17,
21]. The construction of network infrastructure aims to improve network speed, storage, information transmission and other aspects. The improvement of network infrastructure can significantly improve the speed of information dissemination and diffusion, promote the intelligent production and management of production and marketing in relevant industries, and play an important role in saving resource utilization and reducing transaction costs, thus affecting the energy utilization rate and carbon emission intensity of various industries.
First of all, the rapid dissemination and diffusion of information plays an important role in the transformation and development of the energy industry itself and in saving resources in other industries. Because information has important value, and information dissemination and diffusion have played an important role in economic growth and technological progress [
22,
23], the construction of network infrastructure not only improves the speed of information dissemination and diffusion, but also promotes the development and efficiency of the energy industry. Specifically, the construction of network infrastructure makes the cost of information acquisition and dissemination lower, and the rapid dissemination of a large number of enterprise production and operation data and massive information brings new opportunities for the development of various industries and the improvement of efficiency, effectively saving resources.
Secondly, due to high permeability, and after the construction of network infrastructure has been deep integrated with various industries, enterprises can realize the intelligent management of production and operation activities and improve energy efficiency. The use of information and communication technology to establish intelligent application and management mechanisms for the supply side and the demand side can achieve efficient management and accurate matching of the energy supply to the consumer side, and meet the energy demand of different regions, different groups and different industries. Therefore, an efficient, clean and economic energy supply and consumption system can be built to realize the clean and efficient use of energy. Some studies have found that intelligent energy networks can not only reduce the total cost and carbon emission intensity of society, but also improve its economic benefits [
24,
25]. Intellectualization also promotes the interconnection of production and business activities such as design, production and sales, and strengthens the whole life cycle management. Reducing the waste in production and manufacturing in a systematic and sustainable way, and realizing the recycling of resources and energy helps to promote energy conservation and emission reduction. Based on the above analysis, this paper proposes the following hypothesis:
H1. The construction of network infrastructure helps to promote energy conservation and emission reduction.
2.3. Micro Mechanism of Network Infrastructure Construction Affecting Energy Conservation and Emission Reduction
From a micro perspective, the construction of network infrastructure has a profound impact on enterprises’ green technology innovation, energy efficiency and other production ways, and then affects the energy utilization rate and carbon emission intensity of enterprises.
Firstly, the construction of network infrastructure affects the green innovation behavior of enterprises. The construction and utilization of the network are conducive to the exchange and communication of information within enterprises and the realization of information sharing. Information sharing has an important impact on enterprise innovation [
26,
27], and affects the green innovation behavior of enterprises [
28,
29]. On the one hand, green technology innovation can reduce the cost of enterprise terminal governance and production legitimacy, and reduce the environmental pressure of production; on the other hand, green innovation reduces the use of resources from the source and directly reduces the pollution discharge. At the same time, the construction of network infrastructure has also promoted the development of recycling technology innovation, opened the loop of production waste recycling and brought benefits to enterprises. To sum up, through green technology innovation, the construction of network infrastructure can not only change the production process, reduce governance cost, develop green products and improve management efficiency, but can also greatly reduce the impact of production and consumption on the environment to a great extent, save production resources and improve the market competitiveness of enterprises as well.
Secondly, the construction of network infrastructure can also affect the energy efficiency of enterprises. Some studies have pointed out that information and communication technology (ICT) can improve the energy intensity and carbon efficiency of manufacturing enterprises [
30]. On the one hand, the adoption of ICT intensifies the market competition, reduces the product price markup, and leads to the reduction of energy-saving investment by manufacturing enterprises. On the other hand, the adoption of ICT and energy complement each other (the adoption of ICT is complementary with energy), which can promote energy input to replace traditional factors such as labor and capital, thus increasing the energy intensity of enterprises [
31]. ICT can help enterprises increase output while consuming less energy [
32]. Based on the above analysis, this paper proposes the following hypotheses:
H2a. Network infrastructure construction promotes energy conservation and emission reduction by promoting green technology innovation.
H2b. Network infrastructure construction promotes energy conservation and emission reduction by improving energy efficiency.
2.4. Macro Mechanisms of Network Infrastructure Construction Affecting Energy Conservation and Emission Reduction
The construction of network infrastructure not only affects micro-mechanisms of enterprise production behavior, but also promotes the development of regional Internet and the formation of the digital economy, and affects the regional industrial structure and financial development (as shown in
Figure 1). In turn, it affects the energy utilization rate and carbon emission intensity. Specifically, first, the construction of network infrastructure promotes the development of modern logistics and the transportation industry, which relies heavily on network information technology, thus reducing the transportation cost and energy consumption of the transportation industry. Second, the construction of network infrastructure has promoted the development of digital economies based on big data, the Internet of Things and artificial intelligence, and formed the transformation and upgrading of traditional industries, thereby improving energy utilization and cutting carbon emission intensity. Some studies pointed out that the digital economy can improve the allocation of resources [
33,
34], making those industries with higher energy efficiency and technological efficiency more popular with investors and consumers, and causing the proportion of industrial sector structures to rise. Therefore, the change of industrial structures is an important channel for the construction of network infrastructure in order to affect energy conservation and emission reduction. In addition, the construction of network infrastructure has accelerated the development of E-commerce and helped to upgrade the industrial structure. E-commerce lowers the entry barriers of enterprises, especially the development of small and medium-sized enterprises, and improves the industrial value chain [
35].
Network infrastructure also helps to improve financial services, while financial development is crucial for improving energy efficiency. Due to the long spatial distance and high economic costs of formal banking services in developing countries, advances in ICT facilitate the faster flow of information, thereby increasing credit rationing capacity and improving financial services [
36]. An experimental analysis showed that there is a long-term causal relationship between ICT technology and financial development [
37]. Financial development can affect energy demand and energy efficiency by increasing consumption and enterprise investment [
38,
39]. In addition to debt financing of commercial banks, equity financing makes it easier for enterprises to obtain financial capital at a lower cost, so as to expand existing businesses or use it for R&D innovation. Green consumption and green finance policies reduce the financial risks and borrowing costs associated with energy-saving products and cutting-edge technologies, thus affecting energy consumption and energy efficiency. Some scholars also found that financial development can reduce the intensity of carbon emissions, because financial development helps enterprises to innovate and adopt new technologies, thereby reducing energy consumption and carbon emissions [
40,
41]. The development of financial markets has reduced the CO2 emission intensity of developed and emerging financial economies [
42]. Zaidi et al. [
43] found that globalization and financial development reduced carbon emissions, while economic growth and energy intensity increased carbon emissions. Based on the above analysis, this paper proposes the following hypotheses:
H3a. Network infrastructure construction promotes energy conservation and emission reduction by influencing industrial structures.
H3b. Network infrastructure construction promotes energy conservation and emission reduction by influencing financial development.
5. Discussion
The conclusion of this paper points out that the construction of network infrastructure is helpful to realize regional energy conservation and emission reduction. On the one hand, the construction of network infrastructure improves the speed of information dissemination and diffusion, and promotes the realization of intelligent production in relevant industries, such as production and marketing, so as to effectively reduce production costs, shorten the time to market of products, reduce repeated energy consumption, etc., and promote energy conservation and emission reduction in the whole life cycle production. On the other hand, network infrastructure construction also promotes energy conservation and emission reduction in regional economic development by influencing green innovation of enterprises, micro-mechanisms of energy efficiency and macro-mechanisms of industrial structures and financial development. From the closely related literature of this article, Zhang et al. explored the relationship between the digital economy, energy efficiency and carbon emissions by using provincial and regional data [
8], and Xu and Zhong discuss the relationship between ICT capital and shared prosperity, energy conservation and emission reduction [
6], but these studies tended to reflect the macro-level analysis and did not reach a consensus conclusion. Some studies have discussed the impact of network infrastructure construction on greenhouse gas emissions [
55,
56], but these studies lack a discussion on the impact network infrastructure construction on energy efficiency. This paper makes the following research expansion based on existing research. First, it examines the comprehensive impact of network infrastructure construction from the aspects of energy efficiency and carbon emissions. Second, it studies how network infrastructure affects energy conservation and emission reduction from both micro and macro mechanisms, which enriches the relevant research in this field.
This paper uses China’s city-level data and estimates based on the quasi-natural experiment of the "Broadband China" policy. This has the following advantages. Firstly, after the establishment of the "Broadband China" demonstration city (urban agglomeration), the focus of urban development is to strengthen the construction of network infrastructure, such as strengthening the construction of optical fiber networks, supporting the research and development of key core technologies of broadband networks and the industrialization of products, which better fits the research theme of this paper. Secondly, the establishment of “Broadband China” model cities is mainly based on the city’s household broadband access capacity, broadband penetration rate, mobile phone penetration rate, broadband user penetration rate and other relevant indicators, and the establishment of model cities is also strictly screened by relevant departments. Therefore, the “Broadband China” policy itself has a certain randomness, which can provide a quasi-natural experiment for this study.
With the wide application of digital technologies such as artificial intelligence, big data, blockchain and so on, more and more research has focused on the relationship between digital technology, energy efficiency and carbon emissions [
9,
10,
11,
12,
13]. While this paper discusses the impact factors of energy conservation and emission reduction from the perspective of network infrastructure construction, the following aspects are mainly considered. Firstly, from the reality and relevant survey results, the success rate of enterprise digital transformation is low, and core indicators such as digital economy are difficult to accurately quantify. Therefore, it is necessary to re-evaluate the effect of energy conservation and emission reduction from the perspective of network infrastructure construction. Secondly, network infrastructure has the characteristics of basic and quasi-public goods, which can provide a micro-view for the study of energy conservation and emission reduction mechanisms of the whole life cycle production. Thirdly, the deep integration of network infrastructure and traditional industries has also brought about changes in industrial structures and financial development model, so it is also necessary to explore its macro-role mechanism in the development of a low-carbon economy. The energy conservation and emission reduction effect of network infrastructure construction may also be restricted by the degree of resource abundance, urban development and low-carbon policies; therefore, this paper also considers the heterogeneity of the above factors.
6. Conclusions and Prospects
The dual-carbon target strategy is a major commitment made by China to deal with global warming, which puts forward higher requirements for energy conservation and emission reduction. In this context, it is particularly important to explore the factors affecting energy conservation and emission reduction. Based on the “Broadband China” policy as a quasi-natural experiment, this paper discusses the impact of network infrastructure construction on energy conservation and emission reduction. The results show that the construction of network infrastructure significantly improves the energy utilization rate and reduces carbon emission intensity, thus achieving the effect of energy conservation and emission reduction. From the perspective of micro-mechanisms, the construction of network infrastructure affects the effect of energy conservation and emission reduction by influencing the production behavior of enterprises such as green technology innovation and energy efficiency. From the perspective of macro mechanisms, the construction of network infrastructure promotes the development of the Internet and digital economy, and further promotes the industrial structure and financial development, thus contributing to the realization of energy conservation and emission reduction. The heterogeneity analysis shows that the network infrastructure construction has a more significant effect on energy conservation and emission reduction in non-resource-based cities, and there is a certain “resource curse” phenomenon in resource-based cities. Compared with the central and western regions, the impact of network infrastructure on energy conservation and emission reduction is more obvious in the eastern region. The digital divide affects the effect of network infrastructure construction on energy conservation and emission reduction. Network infrastructure construction has a more significant impact on energy conservation and emission reduction in low-carbon cities compared with non-low-carbon cities.
The research of this article has important guiding significance for regions or countries that aim to achieve energy conservation and emission reduction. Firstly, the value of network infrastructure construction lies in that it not only improves people’s living quality and the production efficiency of enterprises, but also plays a significant role in improving energy efficiency and reducing the intensity of carbon emission. Hence, a country’s economic conditions and environmental problems can be improved. Therefore, the government should further increase investment in network infrastructure construction, support enterprises to improve production efficiency through intelligent transformation and develop advanced energy-saving and environmental protection technologies and equipment. Secondly, for those resource-dependent countries or regions, the government should focus on promoting the transformation of the economic growth mode of resource-based cities and promote the low-carbon development of industries with intelligence production. Due to the heterogeneity of the impact of network infrastructure construction on energy conservation and emission reduction, resource-dependent cities promote the transformation of their economic growth mode through the development of information and communication technology, which will further help them to solve environmental problems. Finally, for those underdeveloped countries or regions, strengthening the construction of network infrastructure is an important channel to achieve leapfrog growth.
The research of this paper deeply discusses how the construction of network infrastructure affects energy conservation and emission reduction from both micro and macro mechanisms, providing a new perspective for sustainable development research. However, there is still room for improvement in our research. First of all, the research object of this paper is the city, which means that the analysis of the impact of network construction on energy utilization rate and carbon emission intensity of enterprises needs to be further studied in depth. Secondly, the impact of network infrastructure construction on energy conservation and emission reduction in different industries may be different, which requires further explanation. Our next research will focus on the impact of network infrastructure construction on enterprises and consumers at the micro level.