How does the digital economy affect green innovation efficiency: evidence from China

Abstract

Although the digital economy has emerged as a new impetus for countries to improve green innovation efficiency (GIE), existing research has thus far overlooked the direct relationship between them. Based on data from 30 provinces in China from 2011–2020, this paper investigates the impact of the digital economy on GIE by applying the spatial Durbin model, the mediation effect model, and the threshold effect model. The findings suggest that the digital economy can significantly enhance GIE directly and indirectly by promoting financial development, accumulating human capital, and optimizing industrial structure. Further research shows that non-linear characteristics exist between them at different levels of financial development, human capital, and industrial structure. Moreover, the eastern region experiences a more visible impact of the digital economy on provincial GIE. This study provides empirical evidence for an insightful comprehension of the link between the digital economy and GIE and policy suggestions for governments.