Impact of Green Technology Innovation on Green Economy: Evidence from China

Abstract

The impact of green technology innovation and the digital economy on the sustainability of the green economy is increasing. To delve deeper into this subject, this paper utilizes fixed- effect models and threshold effect models. It examines data from 34 provincial administrative regions of China. The aim is to uncover the patterns of influence the green technology innovation and the digital economy have on the sustainability of the green economy. The research findings are as follows: (1) The green technology innovation, digital economy, and their interaction contribute to promoting the high-quality sustainability of the green economy. The sustainability of the green economy relies on the support of green technology innovation and the digital economy. By optimizing the capabilities of green technology innovation and the level of digital economy, managers could enhance the high-quality sustainability of the green economy. (2) The digital economy exhibits a dual threshold effect in driving the sustainability of the green economy through green technology innovation. When the digital economy surpasses the first threshold, the influence of green technology innovation on the green economy experiences a notable increase. However, once the digital economy surpasses the second threshold, the impact of green technology innovation on the green economy begins to diminish significantly. (3) There are notable regional variations in the impact of green technology innovation and digital economy on the sustainability of the green economy across different regions of China. Considering these findings, it is vital for stakeholders in China to implement customized measures. These measures should aim to actively promote the sustainability of China’s green economy. The relevant stakeholders include businesses and the government.