This paper examines the potential of infrastructure improvements, particularly the operation of High-speed railway (HSR), to enhance the energy efficiency of firms. By regarding the operation of the China’s HSR as an exogenous shock, this paper relies on a difference-in-differences estimation to isolate the causal effect of the infrastructure improvement on manufacturing firms’ energy intensity. This paper finds that the operation of HSR has improved the manufacturing firms’ energy intensity through the catalyzing the proliferation of advanced management techniques, and this effect gradually decreases with the increase in distance between the firm and the HSR station. Moreover, HSR indirectly decreases energy intensity by fostering technological innovation, decreasing debt financing costs, and extending debt financing magnitude. The study also uncovers heterogeneous effects of HSR connectivity on manufacturing firms’ energy intensity, which are more pronounced in smaller cities and industries characterized by high concentration and low agglomeration. Furthermore, the impact of HSR connectivity on reducing energy intensity is more substantial in state-owned and larger firms compared to non-state-owned and smaller firms.
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