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Unleashing the power of data element markets: Driving urban green growth through marketization, innovation, and digital finance

Author

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  • Dong, Li
  • Zhu, Xiaowei
  • Yang, Luwei
  • Jiang, Guoliang

Abstract

Achieving sustainable urban growth is vital for fostering cities where economic progress and ecological balance coexist. The rapid evolution of the digital economy presents new opportunities to accelerate urban green development. This study, drawing on China's extensive big data framework, applies a Differences-in-Differences model to explore how the construction of data element markets influences urban sustainability and the mechanisms underlying this relationship. The findings indicate that data element market development significantly enhances urban green growth through three key mediators: improving marketization levels, driving green technological innovation, and expanding digital inclusive finance. Additionally, the study highlights that regions with stronger green development initiatives, lower environmental pressures, and higher economic prosperity experience a more pronounced positive effect. These insights provide a foundation for policy recommendations aimed at leveraging data element markets to facilitate urban sustainability, promote economic resilience, and foster long-term ecological progress.

Suggested Citation

  • Dong, Li & Zhu, Xiaowei & Yang, Luwei & Jiang, Guoliang, 2025. "Unleashing the power of data element markets: Driving urban green growth through marketization, innovation, and digital finance," International Review of Economics & Finance, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025002333
    DOI: 10.1016/j.iref.2025.104070
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    Cited by:

    1. Wu, Shan & Pan, Xiaoya & Wang, Fan, 2025. "Can the synergy between FinTech and data element market development enhance credit allocation efficiency?," International Review of Economics & Finance, Elsevier, vol. 103(C).
    2. Shengnian Wang & Qiuping Bai, 2026. "Data elements marketization and corporate greenwashing: evidence from China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-14, December.
    3. Ge, Shilong & Tu, Zhenyu & Chen, Yalin & Chong, Heap-Yih, 2025. "Data driven-sustainability: The impact of data trading platforms on corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 105(C).
    4. Yang, Ping & Yu, Fuchang & Gao, Pengzhao, 2025. "Digital economy and high-quality agricultural development," Finance Research Letters, Elsevier, vol. 85(PD).
    5. Xu, Ning & Xu, Longchao & Yan, Xiang-Wu, 2025. "Data factor marketization empowering enterprise innovation quality: New evidence from Chinese patent citations," International Review of Economics & Finance, Elsevier, vol. 103(C).
    6. Wu, Haoyue & Yin, Yingkai, 2025. "Data trading platforms and total factor productivity: Insights from biased technical progress," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 377-398.
    7. Liu, Fang & Zhou, Dequn & Ding, Hao, 2026. "How digitalization affects energy technology innovation: The role of government digital regulation," Energy Policy, Elsevier, vol. 209(PB).
    8. Wu, Shan & Zou, Mengqi & Jin, Tongen, 2025. "Data element marketization and corporate investment efficiency: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    9. Fan, Yuezhen & Shi, Linsong, 2025. "The role of government fiscal incentives in green technological innovation: A nonlinear analytical framework," International Review of Economics & Finance, Elsevier, vol. 103(C).

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