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Empirical analysis of the impact of the digital economy on the green transformation of manufacturing: Evidence from China

Author

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  • Chunjie Jia
  • Meng Shang
  • Junwei Cao
  • Yu Liu

Abstract

In this study, the entropy method and the Super-SBM model with unexpected output are used at first to calculate the digital economy development index and the level of green transformation in manufacturing. Then, a range of multi-dimensional empirical methods, including fixed effects models, threshold models, and mediation models, are applied to analyze the characteristics shown by the impact of digital economy development on the green transformation of manufacturing. The research results are obtained as follows. Firstly, the digital economy contributes significantly to promoting the green transformation of manufacturing after excluding the macro-system environmental effects, conducting such robustness tests as stepwise regression and introducing instrumental variables. Secondly, there is a nonlinear relationship between the development of the digital economy and the green transformation of manufacturing with an increasing marginal effect. Lastly, it is revealed through mechanism analysis that the digital economy promotes the green transformation of manufacturing by enhancing the capabilities of green technological innovation and rationalizing industrial upgrading, with the partial mediation effects reaching 21.2% and 21.8%, respectively. Despite the contribution of digital economy to the advanced upgrading of industries, there is no mediation effect exhibited. In addition to confirming the path of achieving the green transformation of manufacturing through the digital economy, these results also guide the government on how policies can be formulated and improved to grow the digital economy and promote the green transformation of manufacturing.

Suggested Citation

  • Chunjie Jia & Meng Shang & Junwei Cao & Yu Liu, 2023. "Empirical analysis of the impact of the digital economy on the green transformation of manufacturing: Evidence from China," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-20, August.
    • Handle: RePEc:plo:pone00:0289968
    DOI: 10.1371/journal.pone.0289968
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