The effect and mechanism of digital economy on green total factor productivity — Empirical evidence from China

Abstract

In the context of global digitalization, it is of great significance to promote the development of digital economy to reduce carbon emissions and improve green total factor productivity (GTFP). Based on the data of 30 provinces in China from 2011 to 2021, this study constructs a variety of methods, such as Super-SBM model, fixed effect model and intermediary effect model, to empirically test the impact and mechanism of digital economy (DIE) on GTFP. Based on the research findings, the growth of DIE contributes to the improvement of GTFP. Moreover, the impact of DIE on GTFP in eastern China is greater than that in central and western China. There are significant differences between the development level of DIE and GTFP in eastern, central and western regions. Further research shows that digital economy affects the improvement of GTFP through three intermediary variables: economic scale, industrial structure and technological innovation. This study provides empirical evidence to support the effective enhancement of GTFP in developing countries as the digital economy evolves. It provides effective recommendations for developing countries and emerging economies to develop a green economy. However, this study has limitations in data sample, research scope and mechanism analysis depth. Therefore, the conclusions drawn in this study can only provide empirical evidence for identifying the relationship between the DIE and GTFP to a certain extent. Future research should be expanded in these aspects.