Effect of digital economy on air pollution in China? New evidence from the “National Big Data Comprehensive Pilot Area” policy

Abstract

This paper, based on the panel data of 284 Chinese prefecture level and above cities span 2010 to 2019, systematically investigated the relationship between digital economy and air pollution, with introducing difference-in-differences model, mediating effect model, and spatial difference-in-differences model, as well as treating the “National Big Data Comprehensive Pilot Area” policy as a quasi natural experiment. Finally, results show that:(1) Digital economy does negatively affect air pollution, in particular the industrial dust, followed by industrial sulfur dioxide and carbon dioxide. All these benchmark results have withstood the robustness test. (2) Almost all the mediating roles of industry structure upgrading, industry intensive development, and online life in the relationship between digital economy and air pollution have been confirmed, except it is partly absent in the digital economy-industrial dust nexus and the digital economy-industrial sulfur dioxide linkage. (3) Negative spatial spillover effect is evident between digital economy and air pollution, regardless of involving the neighboring pilot cities or the non pilot cities. (4) The passive air pollution effect of digital economy varies with the regional distribution, administrative scale, marketization level, and government competitiveness. All these findings shed new lights on government intervention.