Urban governance and sustainable development: The effect of smart city on carbon emission in China

Most countries are facing the problem of how to improve the urban ecological environment for living and production through reasonable urban governance mode. Recently, smart cities have become a worldwide urban governance policy to solve the problem. By focusing on carbon emissions, this study uses a smart city pilot to systematically evaluate its impact on carbon emissions and explore the underlying mechanism. According to the difference-in-difference model, we find that smart cities significantly reduce carbon emissions. The main mechanisms are technological innovation and industrial structure upgrading. Our study provides empirical evidence for how developing countries achieve carbon emission reduction through smart cities and policy implications for transforming urban governance to achieve sustainable development.