Digital superhighways to sustainability: the impact of large-scale digital infrastructure construction on firms’ energy efficiency

The ‘Broadband China’ policy, a series of digital infrastructure modernization projects starting in 2014, greatly expanded and improved local Internet access. This study utilizes the 2011–2016 firm-level data in a staggered difference-in-differences model to examine the energy efficiency gain from the policy. The findings show that the policy-covered enterprises reduced their energy intensity by 2.34% more than their uncovered counterparts, comprising 11.2% of the total Five-Year-Plan target in the sample period. This effect was more pronounced among firms in manufacturing, in eastern and central regions, in non-resource-based cities and among non-state-owned or large-scale firms. Mechanism analysis indicates that the policy reduces energy consumption and emissions by enhancing managerial efficiency and stimulating green innovation. This study shows that digital infrastructure promotes firms’ low-carbon transitions and also advances corporate social responsibility and sustainable development.