Does digital technology advancement promote natural resource utilization efficiency?

Abstract

While China has experienced an extended period of remarkable economic growth, certain industries have faced challenges such as high pollution, energy consumption, and emissions. To address these issues, China has set strategic goals for promoting harmonious coexistence between humans and nature in the new era. As a result, enhancing the efficiency of natural resource utilization has become crucial for achieving sustainable development. In line with this objective, this paper investigates the role of digital technology advancement as a pathway to improve the efficiency of e-government and natural resource utilization. This paper employs the Slacks-Based Measure (SBM) model to calculate the efficiency of natural resource utilization in 276 cities from 2010 to 2020. Utilizing Broadband China's pilot policy, the study employs differences-in-differences and propensity score matching to investigate the impact and mechanism of digital technology progress on natural resource utilization efficiency. The results indicate that the progress in digital technology significantly promotes the efficiency of natural resource utilization, a conclusion that holds even after a series of robustness tests. Mechanism analysis suggests that the progress in digital technology primarily influences resource efficiency by upgrading industrial structures and innovating green technologies. Heterogeneity analysis reveals that the positive impact of digital technology progress on natural resource utilization efficiency is more pronounced in cities with lower political hierarchies, larger population sizes, non-resource-based economies, and those not classified as old industrial bases. This paper expands the research scope of natural resource utilization efficiency and provides specific policy recommendations.