Assessing the impact of digital economy on green development efficiency in the Yangtze River Economic Belt

Abstract

From principal component analysis (PCA) of 2011–2019 panel data for 108 cities along China's Yangtze River Economic Belt (YREB), this article reports findings on digital economy (DIE) and green development efficiency (GDE). We used a stochastic nonparametric envelopment of data (stoNED) model to measure green development efficiency and a mediating effect model to test the impact of DIE on GDE. We also assessed its mechanisms from a Chinese perspective, finding that (1) DIE significantly promotes GDE in China. (2) Moreover, DIE promotes the GDE in YREB through technological innovation, through the accumulation of human capital and, through upgrades to industrial structures. (3) Furthermore, DIE has heterogeneous effects on GDE. DIE in upstream and downstream regions and in large- scale cities and medium-scale cities can improve GDE, while the effect of DIE in midstream and small-scale cities is not obvious. These results contribute empirical support and a decision-making basis for promoting the win-win situation where DIE and GDE work together. We recommend speeding up the construction and improvement of digital infrastructure, enhancing the enabling capacity of DIE, and implementing a differentiated DIE strategy.