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Exploring the Impact of the Digital Economy on Green Total Factor Productivity—Evidence from Chinese Cities

Author

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  • Zuoyufan Sheng

    (School of Business, The University of New South Wales, Sydney 2052, Australia)

  • Chengpeng Zhu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Mo Chen

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

The digital economy promotes economic development, industrial upgrading, and environmental protection. In this study, we calculated green total factor productivity (GTFP) based on the SBM-DDF model and used the entropy method and principal component analysis to calculate a digital economy index. We used panel data from 282 Chinese cities to measure the driving effect of the digital economy on green total factor productivity. The study results show that the digital economy significantly increases GTFP. We then assessed the heterogeneity of this impact. We also explored the mechanisms by which the digital economy promotes green development and found that the digital economy can indirectly increase industrial production efficiency by promoting innovation in green technologies.

Suggested Citation

  • Zuoyufan Sheng & Chengpeng Zhu & Mo Chen, 2024. "Exploring the Impact of the Digital Economy on Green Total Factor Productivity—Evidence from Chinese Cities," Sustainability, MDPI, vol. 16(7), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:7:p:2734-:d:1364228
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