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The impact of digitalization on green economic efficiency: Empirical evidence from city-level panel data in China

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  • Chien-Chiang Lee
  • Zhi-Wen He
  • Huwei Wen

Abstract

The digital transformation of global economic and social activities brought about by advanced information and communication technology (ICT) may have a profound impact on sustainable economic development. This research measures the digitalization of the economy and society in cities of China based on Internet-related indicators and digital financial development and investigates the economic and environmental effects of their digitalization. The empirical results show that digitalization has significantly improved green economic efficiency (GEE), and this finding remains valid after a series of robust analyses. However, there is regional heterogeneity in the improvement effect of GEE. The green effect of digitalization is significant only in the cities with a high degree of economic servitization, capital-abundant cities, and eastern cities. Although digitalization has promoted the green development of the urban economy, it also has a negative spatial spillover effect on the GEE of neighboring cities. One explanation is that cities are shifting polluting industries to other areas during the process of digital transformation.

Suggested Citation

  • Chien-Chiang Lee & Zhi-Wen He & Huwei Wen, 2024. "The impact of digitalization on green economic efficiency: Empirical evidence from city-level panel data in China," Energy & Environment, , vol. 35(1), pages 23-46, February.
    • Handle: RePEc:sae:engenv:v:35:y:2024:i:1:p:23-46
    DOI: 10.1177/0958305X221124225
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    3. Stevovic Ivan & Hadrovic Sabahudin & Jovanovic Mihailo, 2024. "Green Economy And Holistic Planning By Artificial Intelligenceapplication," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 184-188, October.
    4. Bie, Fan & Zhou, Luyao & Liu, Shuo & Yang, Tao, 2024. "Government digital transformation, resource curse and green total factor energy efficiency in Chinese cities," Resources Policy, Elsevier, vol. 92(C).
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    8. Gao, Yuxin & Gao, Ming, 2024. "Did China's energy consumption permit trading scheme improve green economic efficiency? Prefecture-level evidence from China," Energy, Elsevier, vol. 308(C).

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