Impact of Broadband Infrastructure on Green Total Factor Energy Efficiency : Evidence from Prefecture-Level Data in China

Using a quasi-natural experiment and the city-level panel data from 2009 to 2018 in China, this paper investigates the impact of broadband infrastructure on green total factor energy efficiency. Results show that the policy intervention of Broadband China has significantly improved the green total factor energy efficiency. This paper examines two transmission mechanisms. On the one hand, broadband infrastructure can reduce trade costs, thus improving the green total factor energy efficiency in cities with higher trade costs and cities with lower trade openness. On the other hand, broadband infrastructure, promotes total factor energy efficiency through technology diffusion rather than innovation