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Unleashing the power of the digital economy for environmental sustainability

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  • Zheng, Chuang
  • Ma, Sa

Abstract

This study investigates how digital economy development enhances environmental sustainability in urban contexts using panel data from 280 Chinese prefecture-level cities (2010–2023) by employing multiple econometric methods. Results demonstrate that digital advancement significantly improves urban environmental efficiency through crucial mediating mechanisms: industrial structure enhancement and green innovation. Government environmental attention positively moderates this relationship, amplifying digital initiatives’ effectiveness. The impact exhibits pronounced heterogeneity across regional and urban hierarchies, with stronger effects in eastern regions and core cities. These findings offer insights into calibrating digital–environmental strategies to diverse development contexts rather than implementing uniform approaches.

Suggested Citation

  • Zheng, Chuang & Ma, Sa, 2025. "Unleashing the power of the digital economy for environmental sustainability," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325012851
    DOI: 10.1016/j.frl.2025.108027
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