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How does the digital economy promote green Development? Empirical evidence from 282 Chinese Cities

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  • Lihui Cai
  • Xingyu Luo
  • Ziwang Gao
  • Yuequn Cao

Abstract

Using data on 282 Chinese cities, we explore the relationship between the digital economy and green development, and the underlying mechanisms. We find a significant inverted U-shaped relationship between digital economy and green development. This suggests that it plays a “creative†function in fostering urban green growth in the early stages of digital economic development. However, too much digital economic expansion will put some strain on the environment and have a “destructive†effect on urban green development. Mechanism analysis reveals two important processes for realizing the dividends of green development via the digital economy: improving technological innovation and reducing resource misallocation. Finally, the impact of the digital economy on green development significantly varies by geographic location and slope levels.

Suggested Citation

  • Lihui Cai & Xingyu Luo & Ziwang Gao & Yuequn Cao, 2025. "How does the digital economy promote green Development? Empirical evidence from 282 Chinese Cities," Environment and Planning B, , vol. 52(9), pages 2215-2234, November.
    • Handle: RePEc:sae:envirb:v:52:y:2025:i:9:p:2215-2234
    DOI: 10.1177/23998083251328468
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