Smart Highway Pilots, Carbon Emissions, and Air Pollution: Evidence from China

Abstract

The digitalization and intelligent transformation of transportation have emerged as technological solutions for enhancing traffic efficiency and reducing traffic-related pollutants. However, existing studies primarily focus on traditional traffic emission reduction measures, and there is limited empirical evidence demonstrating how the digitization and intelligence of road infrastructure can reduce carbon dioxide emissions and air pollutants. To address this research gap, this study employed a difference-in-differences methodology to investigate the causal effects of the Smart Highways Pilot (SHP) policy on carbon emission intensity (i.e., CO2 emissions per unit of GDP) and air pollution (i.e., PM2.5 concentrations), using data from 272 Chinese cities spanning 2012 to 2023. Our estimation results demonstrate that the implementation of the SHP policy led to an average reduction of about 4.7% in CO2 emissions per unit of GDP and a 5.1% decrease in PM2.5 concentrations, translating to an average annual abatement of approximately 707,008 tons of CO2 and a 2.204 μg/m3 drop in PM2.5 concentrations among the sample pilot cities. Furthermore, the carbon reduction and pollution mitigation effects of the SHP policy were more pronounced in regions emphasizing pilot themes, such as infrastructure digitalization and vehicle–road collaboration, cities promoting new-energy vehicles, and eastern regions. This study provides robust causal evidence for policymakers to assess the synergistic carbon abatement and pollution reduction benefits of SHP policies, while contributing to the literature on smart transportation and sustainable development, and offering valuable insights for other countries and regions on building green, low-carbon transportation systems through the digitalization and intelligent upgrading of road infrastructure.