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Digital Economy and Green Development in RCEP Countries: Evidence from Panel Data and Mediation Analysis

Author

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  • Chen, Yuexin
  • Li, Xijin
  • Wang, Xing
  • Yang, Haowei
  • Guo, Xiaolong
  • Yang, Runda

Abstract

This study examines the impact of the digital economy on sustainable development in 15 Regional Comprehensive Economic Partnership (RCEP) member countries over the period 2013–2023. Using a panel dataset and utilizes a fixed-effects regression model combined with mediation analysis, the analysis focuses on three fundamental aspects of the digital economy—digital infrastructure, digital industry development, and digital innovation and application—and their respective effects on environmental performance, quantified measured by the Air Quality Index (AQI) and the GLCDI. findings indicate l a dual impact: while digital industry advancement and innovation contribute positively to environmental quality through improved efficiency and the dissemination of green technology, whereas the expansion of digital infrastructure generally deteriorates environmental outcomes due to elevated energy consumption and electronic waste generation. Mediation research reveals two key transmission mechanisms—industrial structure adjustment and green technology adoption—by which digitalization affects green development. Heterogeneity tests further reveal that the strength and direction of these effects varied among countries with varying income levels and technological capacities. The results highlight the necessity for regulatory frameworks that not only foster digital innovation but also mitigate environmental hazards linked to the expansion of digital infrastructure growth. By connecting digital transformation strategies with green policy goals, RCEP economies can more effectively utilize the Digital Economy (DE) to promote sustainable and inclusive development.

Suggested Citation

  • Chen, Yuexin & Li, Xijin & Wang, Xing & Yang, Haowei & Guo, Xiaolong & Yang, Runda, 2026. "Digital Economy and Green Development in RCEP Countries: Evidence from Panel Data and Mediation Analysis," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1607-1630.
  • Handle: RePEc:eee:ecanpo:v:90:y:2026:i:c:p:1607-1630
    DOI: 10.1016/j.eap.2025.12.001
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