Smart City Construction and Urban Green Development: An Analysis from the Perspectives of Industrial Structure and Technological Progress

Authors

  • Diandian Zhang *

    School of Public Administration and Policy, Shandong University of Finance and Economics, Jinan 250014, China

  • Haiqiao Wu

    School of Public Administration and Policy, Shandong University of Finance and Economics, Jinan 250014, China

DOI:

https://doi.org/10.55121/upc.v3i1.556

Keywords:

Urban Green Development , Smart City , DID, Mediating Effect

Abstract

As an innovative urban development model, smart cities have become a pivotal strategy for fostering green, efficient, and sustainable urban growth, epitomizing efficiency, intelligence, and sustainability. Investigating the impact of the smart city pilot policy on urban green development not only deepens our understanding of smart city construction but also further supports urban green development. This study utilizes panel data from 191 Chinese cities (2008-2022) and employs a DID model and a mediating effect model to analyze the influence of smart city construction on urban green development. The smart city pilot policy significantly and positively impacts urban green development, a finding that remains robust across various tests. The direct influence of the smart city pilot policy on urban green development is seen in three key areas: resources, environment, and technology. Mechanism tests indicate that the smart city pilot policy promotes urban green development via two primary pathways: industrial structure upgrading and technological progress. The impact shows clear heterogeneity, having a significant effect on non-resource-based cities and small cities. The study proposes several policy recommendations, including promoting the digitalization and informatization level of industries, strengthening the guidance and regulation of smart city construction and technological innovation, and establishing a regional coordination mechanism.

References

[1] Liang, L., Wang, Z., Li, J., 2019. The effect of urbanization on environmental pollution in rapidly developing urban agglomerations. Journal of Cleaner Production. 237, 117649. DOI: https://doi.org/10.1016/j.jclepro.2019.117649

[2] Wang, D., Peng, J., Tao, X., et al., 2024. Boosting urban prediction tasks with domain-sharing knowledge via meta-learning. Information Fusion. 107, 102324. DOI: https://doi.org/10.1016/j.inffus.2024.102324

[3] Ounoughi, C., Ben Yahia, S., 2023. Data fusion for ITS: A systematic literature review. Information Fusion. 89, 267–291. DOI: https://doi.org/10.1016/j.inffus.2022.08.016

[4] Sodhro, A.H., Pirbhulal, S., Luo, Z., et al., 2019. Towards an optimal resource management for IoT based Green and sustainable smart cities. Journal of Cleaner Production. 220, 1167–1179. DOI: https://doi.org/10.1016/j.jclepro.2019.01.188

[5] Wang, L., Li, F., Li, X.,et al., 2025. Assessing smart cities policy on urban green growth in China: The mediating effect of urban resilience. Sustainable Cities and Society. 128, 106471. DOI: https://doi.org/10.1016/j.scs.2025.106471

[6] Renugadevi, N., Saravanan, S., Naga Sudha, C.M., 2023. IoT based smart energy grid for sustainable cites. Materials Today: Proceedings. 81, 98–104. DOI: https://doi.org/10.1016/j.matpr.2021.02.270

[7] Mutambik, I., 2023. The Global Whitewashing of Smart Cities: Citizens' Perspectives. Sustainability. 15(10), 8100. DOI: https://doi.org/10.3390/su15108100

[8] Jiang, H., Jiang, P., Wang, D., et al., 2021. Can smart city construction facilitate green total factor productivity? A quasi-natural experiment based on China's pilot smart city. Sustainable Cities and Society. 69, 102809. DOI: https://doi.org/10.1016/j.scs.2021.102809

[9] Caragliu, A., Del Bo, C., Nijkamp, P., 2011. Smart cities in Europe. Journal of Urban Technology. 18(2), 65–82. DOI: https://doi.org/10.1080/10630732.2011.601117

[10] Ferrara, R., 2015. The smart city and the green economy in Europe: A critical approach. Energies. 8(6), 4724–4734. DOI: https://doi.org/10.3390/en8064724

[11] Yigitcanlar, T., Kamruzzaman, M., 2018. Does smart city policy lead to sustainability of cities? Land Use Policy. 73, 49–58. DOI: https://doi.org/10.1016/j.landusepol.2018.01.034

[12] Yigitcanlar, T., Kamruzzaman, M., Foth, M.,et al., 2019. Can cities become smart without being sustainable? A systematic review of the literature. Sustainable Cities and Society. 45, 348–365. DOI: https://doi.org/10.1016/j.scs.2018.11.033

[13] Witkowski, K., 2017. Internet of things, big data, industry 4.0 – Innovative solutions in logistics and supply chains management. Procedia Engineering. 182, 763–769. DOI: https://doi.org/10.1016/j.proeng.2017.03.197

[14] Zhang, Y., Gao, Y., 2019. The effects of smart city construction on regional manufacturing upgrading. Soft Science. 33(9), 46–52. DOI: https://doi.org/10.13956/j.ss.1001-8409.2019.09.08

[15] Mo, J., Wu, Y., 2024. Study on the green development effect of new smart cities: A quasi-natural experiment based on multiphase DID. Ecological Economy. 40(3), 92–101.(in Chinese)

[16] Chu, X.H., Ge, D., Alamri, S., et al., 2023. Greening smart cities: An investigation of the integration of urban natural resources and smart city technologies for promoting environmental sustainability. Sustainable Cities and Society. 99, 104985. DOI: https://doi.org/10.1016/j.scs.2023.104985

[17] He, Y., Zheng, H., 2023. How does environmental regulation affect industrial structure upgrading? Evidence from prefecture-level cities in China. Journal of Environmental Management. 331, 117267. DOI: https://doi.org/10.1016/j.jenvman.2023.117267

[18] Lu, X., Jiang, X., Gong, M., 2020. How land transfer marketization influence on green total factor productivity from the approach of industrial structure? Evidence from China. Land Use Policy. 95, 104610. DOI: https://doi.org/10.1016/j.landusepol.2020.104610

[19] Yang, X., Zhang, D., Masron, T.A., 2024. The impact of smart city construction on achieving peak carbon neutrality: Evidence from 31 provinces in China. Land Use Policy. 147, 107372. DOI: https://doi.org/10.1016/j.landusepol.2024.107372

[20] Zhang, X., Liu, J., Li, B., 2020. Environmental regulation, technological innovation and the green development of manufacturing. Journal of Guangdong University of Finance & Economics. 35(5), 48–57.(in Chinese)

[21] Chen, Y., Chen, S., Miao, J., 2024. Does smart city pilot improve urban green economic efficiency: Accelerator or inhibitor. Environmental Impact Assessment Review. 104, 107328. DOI: https://doi.org/10.1016/j.eiar.2023.107328

[22] Jiang, T., 2022. Mediating effects and moderating effects in causal inference. China Industrial Economics. (5), 100–120. DOI: https://doi.org/10.19581/j.cnki.ciejournal.2022.05.005

[23] Zhang, B., Chen, S., Cao, L., 2022. Is the city low carbon because of "smart"? Exploration from the pilot policy of smart city. Economic Review. (6), 132–149. DOI: https://doi.org/10.19361/j.er.2022.06.12

[24] Bouzguenda, I., Alalouch, C., Fava, N., 2019. Towards smart sustainable cities: A review of the role digital citizen participation could play in advancing social sustainability. Sustainable Cities and Society. 50, 101627. DOI: https://doi.org/10.1016/j.scs.2019.101627

[25] Prateeppornnarong, D., 2025. Cities and sustainability: Exploring contributions, opportunities and challenges of smart city implementation towards social sustainability. Urban Governance. 5(1), 69–78. DOI: https://doi.org/10.1016/j.ugj.2025.02.005

[26] Cengiz, B., Adam, I.Y., Ozdem, M.,et al., 2025. A survey on data fusion approaches in IoT-based smart cities: Smart applications, taxonomies, challenges, and future research directions. Information Fusion. 121, 103102. DOI: https://doi.org/10.1016/j.inffus.2025.103102

[27] Du, J., Wang, Y., Zhao, A., 2020. The effects and mechanism of smart city construction on urban green development. Soft Science. 34(9), 59–64. DOI: https://doi.org/10.13956/j.ss.1001-8409.2020.09.09

[28] Wang, D., Liang, Y.F., Dou, W., 2024. How does urban industrial structure upgrading affect green productivity? The moderating role of smart city development. Structural Change and Economic Dynamics. 72, 133–149. DOI: https://doi.org/10.1016/j.strueco.2024.09.017

[29] Zhang, Z., Qin, S., 2018. Spatial effects of environmental regulation and industrial restructuring on green development: An empirical study based on cities in the Yangtze River economic belt of China. Modern Economic Research. (11), 79–86. DOI: https://doi.org/10.13891/j.cnki.mer.2018.11.013

[30] Zhang, R., Zhong, C., 2022. Smart city pilot projects, nearby pollution transfer, and green and low-carbon development: new evidence from Chinese counties. China Population Resources and Environment. 32(4), 91–104. DOI: https://doi.org/10.12062/cpre.20210622

[31] Yuan, R., Feng, C., Wang, M.,et al., 2016. Technological innovation, technological gap and green development in China. Studies in Science of Science. 34(10), 1593–1600. DOI: https://doi.org/10.16192/j.cnki.1003-2053.2016.10.019

[32] Takatsuka, H., Zeng, D., Zhao, L., 2015. Resource-based cities and the Dutch disease. Resource and Energy Economics. 40, 57–84. DOI: https://doi.org/10.1016/j.reseneeco.2015.01.003

[33] Zhang, Q., Zhao, X., 2024. Can the digital economy facilitate the optimization of industrial structure in resource-based cities? Structural Change and Economic Dynamics. 71, 405–416. DOI: https://doi.org/10.1016/j.strueco.2024.08.010

Downloads