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The impact of urban digital transformation on resource sustainability: Evidence from a quasi-natural experiment in China

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  • Jiang, Zhengyu
  • Zhang, Xinyi
  • Zhao, Yingzhi
  • Li, Chengming
  • Wang, Zeyu

Abstract

Currently, advancing digital economy and resource crisis occur simultaneously in several countries. Whether digital transformation can improve resource sustainability, particularly energy sustainability, is an urgent problem for governments. We used panel data from 230 prefecture-level cities in China from 2006-2019 to assess the impact of urban digital transformation strategies represented by smart cities on urban resource sustainability using the difference-in-difference (DID) model. The results show that urban digital transformation significantly enhances urban resource sustainability, which still holds after passing robustness tests. The mechanism analyses indicate that urban digital transformation can promote resource sustainability through technological innovation, structural transformation, and capital reallocation. Further analysis reveals that implementing urban digital transformation in eastern, non-resource-based cities and cities with unreasonable industrial structures has a more favourable effect on resource sustainability. This paper provides an empirical basis for the urban digital transformation to empower green urban recovery and low-carbon development by promoting sustainable resources.

Suggested Citation

  • Jiang, Zhengyu & Zhang, Xinyi & Zhao, Yingzhi & Li, Chengming & Wang, Zeyu, 2023. "The impact of urban digital transformation on resource sustainability: Evidence from a quasi-natural experiment in China," Resources Policy, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723004956
    DOI: 10.1016/j.resourpol.2023.103784
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    More about this item

    Keywords

    Digital transformation; Smart city; Resource sustainability; Resources; Green recovery;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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