China’s green digital era: How does digital economy enable green economic growth?

Abstract

By using the Global Malmquist-Luenberger (GML) index method to measure the green economic growth (GEG) of 30 Chinese provinces from 2007 to 2019, this research employs a dynamic panel model to estimate the nexus between the digital economy and GEG, focusing specifically on the role of technological innovation and industrial structure upgrading. We also investigate the moderating effects of foreign direct investment (FDI) and R&D intensity. The main results indicate that: (1) The level of GEG and the digital economy in all Chinese provinces shows a significant upward trend; (2) the digital economy shows a positive correlation with China’s GEG; (3) the digital economy improves China’s GEG by enhancing the level of technological innovation and upgrading the industrial structure; and (4) FDI weakens the positive influence of the digital economy on GEG, and R&D intensity is conducive to a positive correlation between the digital economy and GEG. Based on the above results, we also analyze the impacts of infrastructure, social impact, innovation and application, and digital employment in the digital economy. Finally, we propose some policy implications for China’s future GEG.

Keywords

• Green economic growth (GEG)
• Digital economy
• Dynamic panel model
• Mediating effect
• China