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How does the digital economy affect green total factor productivity? -Based on the urban cluster perspective

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  • Huifang Liu

    (Tianjin University)

  • Pengwei Yuan

    (University of Jinan)

  • Xiaoqing Dong

    (University of Jinan)

Abstract

The digital economy (DE) has emerged as a powerful catalyst for sustainable growth, yet its impact on urban green total factor productivity (GTFP) remains complex and spatially uneven. This study integrates the entropy weights method with the super-efficiency slack-based measure model (SBM-DEA) to measure GTFP across 139 Chinese cities from 2011 to 2022. By employing a spatial Durbin model (SDM), we uncover both the direct and spillover effects of DE on GTFP and further investigate the mediating roles of energy consumption (EC) and industrial structure (IS) transformation. Our results indicate a U-shaped direct relationship between DE and GTFP, suggesting that digitalization initially suppresses but ultimately enhances GTFP. This effect is amplified in cities with higher population density (PD), where the DE more effectively drives efficiency gains. Furthermore, spatial spillover effects imply that DE-induced improvements in one region can stimulate GTFP growth in neighboring areas. However, uneven DE development across regions may reinforce structural disparities and create digital–industrial barriers. These findings highlight the need for targeted regional strategies to harness the full green potential of digital transformation.

Suggested Citation

  • Huifang Liu & Pengwei Yuan & Xiaoqing Dong, 2025. "How does the digital economy affect green total factor productivity? -Based on the urban cluster perspective," Economic Change and Restructuring, Springer, vol. 58(5), pages 1-26, October.
    • Handle: RePEc:kap:ecopln:v:58:y:2025:i:5:d:10.1007_s10644-025-09917-9
    DOI: 10.1007/s10644-025-09917-9
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