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Digital technology as a catalyst: Mitigating population aging's impact on ecological environmental quality in China

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  • Qi, Yong
  • Bai, Tingting

Abstract

Population aging presents increasing challenges to ecological environmental quality (EEQ), particularly in China. This study develops a general equilibrium model and employs provincial panel data (2007–2023) to examine the impact of aging on EEQ and the moderating role of digital technology (DT). The findings indicate that aging lowers EEQ primarily by raising social security (SSE) and medical and health expenditures (MHE), while crowding out environmental governance expenditures (EGE). At advanced stages of development, DT reshapes fiscal allocations, fosters industrial upgrading, and enhances energy efficiency, thereby mitigating and even reversing the negative effects of aging. Additional analyses reveal stronger moderating effects in urban areas, while spatial analysis indicates that sustained digitalization alleviates both local and cross-regional environmental pressures, reflecting its capacity to curb pollution diffusion linked to industrial relocation. These results underscore the potential of digital transformation to help developing countries reconcile demographic pressures with sustainable environmental development.

Suggested Citation

  • Qi, Yong & Bai, Tingting, 2026. "Digital technology as a catalyst: Mitigating population aging's impact on ecological environmental quality in China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 249-273.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:249-273
    DOI: 10.1016/j.eap.2025.11.028
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