Abstract：Based on the panel data of prefecture level cities in China, this paper uses difference-in-differences method to evaluate the impact of smart city construction on urban environmental pollution. This paper uses PSM-DID method to further verify the impact of smart city construction on urban environmental pollution. The conclusion of this paper shows that the construction of smart city has significantly reduced the urban environmental pollution. On the average, it can reduce the urban environmental pollution by 9%—24%. The estimation results based on PSM-DID method is not significantly different. Mechanism verification shows that the smart city construction innovating urban development uses modern information technology to produce technical effect, configuration effect and structure effect through innovation driven. Thus it reduces urban environmental pollution through the above three effects. The heterogeneity of cities study reveals that cities with high level of human capital, financial development and information infrastructure can significantly enhance the effect of pollution reduction in smart cities. Human capital enhances the pollution reduction of smart cities. Based on the latest practice of China's urban development, this paper benfits to improve the urban environment ecology and upgrades the urban construction. It is of great significance to create a good environment for urban living and production.
Keyword：smart city; environmental pollution; urban scale; innovation driven; schumperian innovation