The impact assessment of smart city policy on urban green total-factor productivity: Evidence from China

This study systematically explored the effect of smart city policy (SCP) on urban green total-factor productivity (GTFP) in China. We first measured the urban GTFP using the Luenberger productivity indicator derived from the directional distance function, and further investigated the impact of SCP on urban GTFP using the difference-in-differences (DID) model, and its heterogeneities, impact mechanism, and spatial spillover effect were examined using balanced panel data for 283 prefecture-level cities from 2004 to 2017. The study produced five key results. (1) SCP can significantly promote urban GTFP in China, and a series of robustness checks verified the validity of this finding. (2) There was a positive spatial spillover effect of SCP on GTFP in neighboring non-pilot cities, while the spillover effect on the neighboring pilot cities was poor. (3) There was heterogeneity among Chinese cities, with the promotional effect of SCP on GTFP being more significant in eastern cities, super cities, non-resource-based cities, and cities with high levels of human capital, financial development, and information and communication infrastructure construction. (4) The regression results of a mediating effect model showed that SCP can promote GTFP through technological innovation, upgrading the industrial structure, and resource allocation optimization. (5) Smart city policy improved urban GTFP mainly by improving technical efficiency rather than technological progress. These conclusions are of great theoretical and practical significance for the Chinese government, and can be used to transform the extensive urban development mode and achieve high-quality development.