IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i16p7216-d1721215.html
   My bibliography  Save this article

Green Revolution vs. Digital Leap: Decoding the Impact of Environmental Regulation on New Quality Productive Forces in China’s Yangtze River Basin

Author

Listed:
  • Ziyi Luo

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China
    These authors contributed equally to this work.)

  • Hui Zhang

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China
    These authors contributed equally to this work.)

  • Lisi Jiang

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Yue Zhang

    (School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China)

  • Yuxin Zeng

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Yue Wang

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

Abstract

The development of New Quality Productive Forces (NQPF), fueled by simultaneous progress of informatization, digitalization, and ecologization, creates a transformative sustainability framework that connects economic growth and environmental protection. People usually think that environmental regulation enhances regional ecologization, thereby boosting total NQPF. Does this hold true for China’s Yangtze River Basin? Utilizing panel data from 2015 to 2022, this study examines the impact of environmental regulation on NQPF across 86 prefecture-level cities in the basin. Our empirical results corroborate that environmental regulation exerts a statistically significant positive effect on digital NQPF development, which in turn contributes substantially to overall NQPF enhancement—This finding remains robust across alternative estimation methods. Our analysis further identifies three primary mechanisms driving this effect: industrial upgrading, technological innovation, and GDP growth. The effect is nonlinear and characterized by a threshold: in less developed areas, environmental regulation somewhat helps, whereas in more developed regions, reaching a certain strength significantly enhances both digital and overall productivity. Furthermore, environmental regulation demonstrates notable spillover effects: they enhance local outcomes while simultaneously improving digital and overall NQPF in neighboring regions. These findings offer strong evidence and valuable policy insights for advancing the digital transformation and high-quality sustainable development of the Yangtze River Basin.

Suggested Citation

  • Ziyi Luo & Hui Zhang & Lisi Jiang & Yue Zhang & Yuxin Zeng & Yue Wang, 2025. "Green Revolution vs. Digital Leap: Decoding the Impact of Environmental Regulation on New Quality Productive Forces in China’s Yangtze River Basin," Sustainability, MDPI, vol. 17(16), pages 1-25, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:16:p:7216-:d:1721215
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/16/7216/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/16/7216/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guo, Mengmeng & Wang, Huixin & Kuai, Yicheng, 2023. "Environmental regulation and green innovation: Evidence from heavily polluting firms in China," Finance Research Letters, Elsevier, vol. 53(C).
    2. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    3. Yanjing Gao & Chenya Liu & Qiuhua Chen & Hang Li, 2025. "New Quality Productive Forces and Forestry Economic Resilience: Coordinated Development, Regional Differences, and Predictive Analysis," Sustainability, MDPI, vol. 17(11), pages 1-33, May.
    4. Cao, Jing & Ho, Mun S. & Ma, Rong & Teng, Fei, 2021. "When carbon emission trading meets a regulated industry: Evidence from the electricity sector of China," Journal of Public Economics, Elsevier, vol. 200(C).
    5. Chen, Juan & Chen, Fuli & Dai, Yufan, 2025. "Media attention and corporate new quality productive forces," International Review of Financial Analysis, Elsevier, vol. 105(C).
    6. Liangfeng Hao & Biyi Deng & Haobo Zhang, 2024. "Enabling Green Innovation Quality through Green Finance Credit Allocation: Evidence from Chinese Firms," Sustainability, MDPI, vol. 16(17), pages 1-21, August.
    7. Florackis, Chris & Fu, Xi & Wang, Jingjing, 2023. "Political connections, environmental violations and punishment: Evidence from heavily polluting firms," International Review of Financial Analysis, Elsevier, vol. 88(C).
    8. Chen Huang & Jinlong Zhao & Zhongchen Yang & Liang Wang, 2025. "The Impact Mechanisms of New Quality Productive Forces on Rural Transformation: Evidence from Shandong Province, China," Sustainability, MDPI, vol. 17(13), pages 1-19, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hu, Zhifei & Liu, Xihe & Li, Xinyu & Wu, Jun, 2024. "How does vertical fiscal imbalance affect corporate green innovation? Empirical evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    2. Purcel, Alexandra-Anca, 2023. "Environmental protection expenditures and EU ETS: Evidence from Romania," Finance Research Letters, Elsevier, vol. 58(PB).
    3. Du, Yanan & Guo, Qunna, 2023. "Green credit policy and green innovation in green industries: Does climate policy uncertainty matter?," Finance Research Letters, Elsevier, vol. 58(PC).
    4. Chiu, Chien-Liang & Chang, Ting-Huan, 2009. "What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1669-1674, August.
    5. Nicolas Canry & Julien Fouquau & Sébastien Lechevalier, 2011. "Sectoral Price Dynamics in Japan: A Threshold Approach," Economics Bulletin, AccessEcon, vol. 31(2), pages 1322-1335.
    6. Jean C. Kouam & Simplice Asongu, 2022. "The non-linear effects of fixed broadband on economic growth in Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 50(5), pages 881-895, August.
    7. Khémiri, Wafa & Noubbigh, Hédi, 2020. "Size-threshold effect in debt-firm performance nexus in the sub-Saharan region: A Panel Smooth Transition Regression approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 335-344.
    8. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance Policy Thresholds for Economic Growth in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 672-689, July.
    9. Becker, Sascha S. & Nautz, Dieter, 2012. "Inflation, price dispersion and market integration through the lens of a monetary search model," European Economic Review, Elsevier, vol. 56(3), pages 624-634.
    10. Jingwen Lu & Lihua Dai, 2023. "Examining the Threshold Effect of Environmental Regulation: The Impact of Agricultural Product Trade Openness on Agricultural Carbon Emissions," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    11. Ostadzad, Ali Hossein, 2022. "Innovation and carbon emissions: Fixed-effects panel threshold model estimation for renewable energy," Renewable Energy, Elsevier, vol. 198(C), pages 602-617.
    12. Dorothée Charlier & Sondès Kahouli, 2018. "Fuel poverty and residential energy demand: how fuel-poor households react to energy price fluctuations," Post-Print halshs-01957771, HAL.
    13. Coudert, Virginie & Couharde, Cécile & Mignon, Valérie, 2015. "On the impact of volatility on the real exchange rate – terms of trade nexus: Revisiting commodity currencies," Journal of International Money and Finance, Elsevier, vol. 58(C), pages 110-127.
    14. Zheng, Yingmei & Qi, Jianhong & Chen, Xiaoliang, 2011. "The effect of increasing exports on industrial energy intensity in China," Energy Policy, Elsevier, vol. 39(5), pages 2688-2698, May.
    15. Mara Leticia Rojas & María María Ibáñez Martín & Carlos Dabús, 2023. "Is Debt Always Harmful for Economic Growth? Evidence from Developing Countries," Working Papers 292, Red Nacional de Investigadores en Economía (RedNIE).
    16. Kelbesa Megersa & Danny Cassimon, 2015. "Public Debt, Economic Growth, and Public Sector Management in Developing Countries: Is There a Link?," Public Administration & Development, Blackwell Publishing, vol. 35(5), pages 329-346, December.
    17. Ku Liang & Yujie Hu, 2025. "Digital Economy Development, Environmental Regulation, and Green Technology Innovation in Manufacturing," Sustainability, MDPI, vol. 17(17), pages 1-31, September.
    18. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    19. Zhu, Ling & Liu, Shasha & Kong, Dongmin, 2023. "Governments' fiscal stress and firm decentralization," International Review of Financial Analysis, Elsevier, vol. 90(C).
    20. Balazs Egert, 2022. "Public policy reforms and their impact on productivity, investment and employment: new evidence from OECD and non-OECD countries," Public Sector Economics, Institute of Public Finance, vol. 46(2), pages 179-205.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:16:p:7216-:d:1721215. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.