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Published on: January 20, 2023
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Does the Digital Economy Increase Green TFP in Cities?
Chuanyu Zhao1, Zhongquan Liu2,3, Xianfeng Yan4
1Business School, Ningbo University, Nningbo 315211, China.
International Journal of Environmental Research and Public Health
|January 21, 2023
Summary
The digital economy boosts green productivity by improving firm technology and removing polluting businesses. This highlights the digital economy
Area of Science:
- Environmental Economics
- Digital Economy Studies
- Urban Development
Background:
- COVID-19 accelerated digital transformation and increased demand for real economy productivity.
- Studying the digital economy's green value is crucial as pandemic prevention becomes normalized.
- The digital economy offers innovative R&D and resource allocation, overcoming traditional production limitations.
Purpose of the Study:
- To investigate the green value of the digital economy at various development levels.
- To analyze the correlation between digital economy growth and green productivity.
- To verify the mechanisms through which digital economy development influences green productivity.
Main Methods:
- Collected green productivity indices and digital economy components for Chinese prefecture-level cities (2011-2019).
- Utilized spatial and temporal trend analysis.
- Employed regression models and an instrumental-variables approach to address endogeneity.
Main Results:
- Higher digital economy levels significantly increase urban green total-factor productivity (GTFP).
- Digital economy drives GTFP growth by upgrading firm production technologies and encouraging green patent applications.
- Digital economy development promotes GTFP by facilitating the exit of polluting enterprises.
Conclusions:
- The digital economy is a key driver of urban green development and productivity.
- Government should prioritize the digital economy to enhance urban green development.
- Leveraging the digital economy can provide better guidance for regional green development strategies.
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