Does smart city policy improve energy efficiency? Evidence from a quasi-natural experiment in China

This paper investigates the effect of the implementation of smart city policy (SCP) on energy efficiency (EE) in China. For this purpose, we have developed a non-convex metafrontier data envelopment analysis (DEA) approach to measure EE, and empirically examine the impacts of SCP on China's EE using Difference-in-Differences (DID) analysis, using a dataset of 251 cities between 2003 and 2016. Results show that there exists significant regional heterogeneity across cities, with the SCP exerting a significant positive effect on EE, indicating that the SCP can effectively improve EE during the study period. These findings are robust to different sub-sample, energy efficiency alternative measures, estimation strategies, and Baidu Search Index. Based on empirical results, the implications of SCP are outlined. (C) 2019 Elsevier Ltd. All rights reserved.