A digital blueprint for sustainability: Can digital infrastructure policies promote renewable energy innovation?

In China's quest for sustainable development, the role of digital infrastructure in driving renewable energy innovation is gaining prominence. This study analyzes data from 282 Chinese cities over the period 2010 to 2020, leveraging the Chinese government's digital infrastructure policy as a quasi-natural experiment. Employing a double machine learning model, we investigate the impact of digital infrastructure development on renewable energy innovation and provide insights into the underlying mechanisms. Additionally, we examine the differential effects of this impact across cities at various stages of development and within different economic zones. Our findings are threefold: (1) Digital infrastructure development significantly advances renewable energy innovation, with these conclusions remaining robust even after addressing potential endogeneity and conducting various robustness tests. (2) Digital infrastructure development promotes renewable energy innovation by enhancing environmental regulatory efforts and fostering fintech development. (3) Further analysis reveals that the positive effects of digital infrastructure development on renewable energy innovation are particularly pronounced in both economically developed and less developed cities, as well as in specific economic regions. Based on our findings, we offer policymakers recommendations to support renewable energy innovations to achieve the SDGs while highlighting the potential challenges and dilemmas these policies may encounter during implementation.