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Digital economy, environmental expenditure, and green total factor productivity

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  • Cui, Xiao
  • Li, Pingrui

Abstract

This paper, based on city-level panel data from 2011 to 2021, examines the link between the digital economy and green total factor productivity. The findings demonstrate that the digital economy enhances green total factor productivity, with environmental expenditure actively moderating this effect. Furthermore, the research identifies significant variations in how the digital economy influences green total factor productivity across cities differing in population size and geographic location. These findings suggest that the application of the digital economy not only fosters green development in cities but also that its effectiveness is shaped by regional characteristics.

Suggested Citation

  • Cui, Xiao & Li, Pingrui, 2025. "Digital economy, environmental expenditure, and green total factor productivity," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016532
    DOI: 10.1016/j.frl.2024.106624
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    References listed on IDEAS

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    Cited by:

    1. Hui Qi & Yue Liu & Hanzi Chen & Pierre Failler, 2025. "The Impact of Enterprise Digitalization on Green Total Factor Productivity: Evidence from Chinese Provinces," Sustainability, MDPI, vol. 17(8), pages 1-23, April.

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    More about this item

    Keywords

    Digital economy; Environmental expenditure; Green total factor productivity;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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