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Does digital economy improve city-level eco-efficiency in China?

Author

Listed:
  • Lai, Aolin
  • Li, Zhenran
  • Hu, Xiurong
  • Wang, Qunwei

Abstract

Previous research focused on the impact of the digital economy on economic development, but did not consider its impact on eco-efficiency. We address this gap by taking China's national big data comprehensive pilot zone (NBD-CPZ) as a quasi-natural experiment, and evaluating its impact on city eco-efficiency using data for 284 Chinese cities from 2006 to 2020. The study found that the NBD-CPZ significantly improved city eco-efficiency, and this impact increased gradually over time. A mechanism analysis shows that the NBD-CPZ impacted city eco-efficiency by reducing mismatched resources and promoting green technology advances. A heterogeneity analysis indicates that the NBD-CPZ's effect on city eco-efficiency was more significant in old industrial cities, resource-based cities, and cities with high energy intensity. This study provides empirical evidence and highlights policy implications for narrowing the ecological civilization disparities between regions from the perspective of a digital economy.

Suggested Citation

  • Lai, Aolin & Li, Zhenran & Hu, Xiurong & Wang, Qunwei, 2024. "Does digital economy improve city-level eco-efficiency in China?," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1198-1213.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1198-1213
    DOI: 10.1016/j.eap.2024.02.006
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    More about this item

    Keywords

    Digital economy; Eco-efficiency; Big data comprehensive pilot zone; Ecological civilization disparities;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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