How Does Digital Economy Promote Green Innovation? Empirical Evidence from Chinese Cities

Abstract

This paper examines the impact of digital economy on the output of urban green innovation and its working mechanisms from the perspective of green technological innovation and on the basis of Chinese cities’ panel data. The empirical study indicates that the digital economy effectively improves the output of urban green innovation in a way that is inclusive to medium and small cities and more effective in areas with a more market-oriented structure. Digital economy improves urban green innovation by promoting economic agglomeration and optimizing regional financial structure, to contribute to green technology’s spillover effect and provide a favorable financial environment for green innovation. Further analysis has found that green innovation arising from the development of digital economy effectively reduces pollution and emission. The conclusions provide meso-level empirical evidence for a profound understanding of digital economy’s impact on green innovation as well as theoretical guidance and policy recommendations for speeding up green transformation in the new context of development.

Keywords

digital economy, green innovation, inclusiveness, high-quality development

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