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Digital innovation and green productivity gap.

Yarong Sun1, Lijun Hu1, Fang He2

  • 1School of Business Administration, Zhongnan University of Economics and Law, Wuhan, China.

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Digital innovation bridges the green productivity gap by enhancing energy efficiency and industrial structures. This study shows digital tools are key for sustainable economic performance, especially in China

Keywords:
Digital innovationDigital-green integrationGreen productivity gapGreen total factor productivity

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Area of Science:

  • Environmental Economics
  • Technological Innovation
  • Sustainable Development

Background:

  • Persistent green productivity gap despite green innovation progress.
  • Limited conversion of green technology into economic productivity gains.
  • Need to understand digital innovation's role in sustainable economic performance.

Purpose of the Study:

  • Investigate digital innovation's impact on narrowing the green productivity gap.
  • Explore mechanisms, moderators, and regional variations of this relationship.
  • Promote effective transformation of green innovation into sustainable economic performance.

Main Methods:

  • Panel data analysis for 287 Chinese cities (2009-2022).
  • Empirical examination of digital innovation's influence.
  • Analysis of moderating factors and regional differences.

Main Results:

  • Digital innovation significantly reduces the green productivity gap.
  • Mechanisms include improved energy efficiency, optimized industrial structures, and stronger environmental regulation.
  • Impact is amplified in inland regions, smaller cities, central China, with private ownership and targeted R&D.

Conclusions:

  • Digital innovation is crucial for closing the green productivity gap.
  • Region-specific strategies are needed for digital-green integration.
  • Policy should focus on leveraging digital innovation for sustainable productivity transformation.