The Effect of Digital Economy on Rural Environmental Governance: Evidence from China

Abstract

Exploring the inherent mechanisms by which the digital economy fosters rural environmental governance holds paramount importance for driving the sustainable development of rural regions and elevating the living standards of rural residents. Drawing upon theoretical frameworks and extensive literature reviews, we have devised comprehensive indicator systems for quantifying the development trajectory of the digital economy and the efficacy of rural environmental governance, employing the entropy method for measurement. Leveraging panel data that spans from 2011 to 2022, encompassing 31 provinces across China, we empirically delve into the influence of the digital economy on rural environmental governance, along with its underlying mechanisms, by employing a fixed effects model. The baseline regression results reveal that the development of the digital economy can significantly promote the improvement of rural environmental governance, even after considering potential endogeneity issues. Moreover, the test results of the mediation effect show that the digital economy can enhance the level of rural environmental governance by accelerating industrial structure optimization and improving green technology innovation. Furthermore, the test result of the regulatory effect implies that the urban–rural dual structure may inhibit the positive effect of the digital economy on rural environmental governance. Additionally, there exists regional disparities in which the digital economy influences rural environmental governance, with the eastern region exhibiting a more pronounced effect compared to other regions.