The Mental Health Benefits of Smart Cities: Evidence from a Quasi-Natural Experiment in China

Depression has become a prevalent global concern. The development of smart cities has advantages in promoting ecological and economic benefits, but the question of whether and how it could bring mental health benefits to individuals remains underexamined. This study aims to identify the influence of smart city pilots (SCPs) on individual depression utilizing a difference-in-difference (DID) design. Based on the sample of 7,351 participants from three waves of the China Health and Retirement Longitudinal Study (CHARLS), the empirical results revealed that SCP has a positive impact on lowering the prevalence of individual depression. Moreover, this association is mediated by individual life satisfaction. Heterogeneity analysis further uncovers that the attenuation effect of SCP is strong for cities that are in the southern region and belong to key science and education cities. These findings also provide policymakers a potential reference for better implementing SCP to achieve mental health outcomes.