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A pathway to sustainable development: Digitization and green productivity

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  • Lee, Chien-Chiang
  • He, Zhi-Wen
  • Yuan, Zihao

Abstract

Green productivity plays an important role in sustainable development, social energy conservation, and emission reduction targets. To investigate the impact of digital development on green total factor productivity, this research employs panel data of China's Yangtze River Delta from 2002 to 2020. First, this paper presents the super SBM method with unexpected output to comprehensively and systematically calculate the green total factor productivity (GTFP) index. Second, we use the partial linear function coefficient (PLFC) model, which can distinguish spatial-temporal heterogeneity, analyze how digital development improves GTFP, and evaluate the effect of human capital (HC) and industrial structure upgrading (IS) in this relationship. In addition, we conduct a comparative study between this delta region and other regions in China. The results of this paper are as follows. (1) Digitization has a significant and positive influence on GTFP for all samples. (2) HC and IS affect the role of digital development in promoting GTFP of cities in the Yangtze River Delta, but their impact is not significant in the three northeastern provinces. (3) The stimulation effect shows significant temporal and spatial heterogeneity under the influence of HC and IS. Provincial capitals and economically developed cities have the most prominent stimulating influence. Lastly, based on the non-parametric relevance between digital development and GTFP, this paper gives constructive and practical policy suggestions to improve GTFP and promote green economic development.

Suggested Citation

  • Lee, Chien-Chiang & He, Zhi-Wen & Yuan, Zihao, 2023. "A pathway to sustainable development: Digitization and green productivity," Energy Economics, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:eneeco:v:124:y:2023:i:c:s0140988323002700
    DOI: 10.1016/j.eneco.2023.106772
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    4. Lee, Chien-Chiang & Zhong, Qiming & Wen, Huwei & Song, Qinghua, 2023. "Blessing or curse: How does sustainable development policy affect total factor productivity of energy-intensive enterprises?," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
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    6. Yahya, Farzan & Lee, Chien-Chiang, 2023. "Disentangling the asymmetric effect of financialization on the green output gap," Energy Economics, Elsevier, vol. 125(C).
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    More about this item

    Keywords

    Sustainable development; Green total factor productivity; Digitization; Human capital; Industrial structure upgrading;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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