Nonlinear environmental impacts of digital transformation in China’s mega-urban agglomerations
Zehui Chen , Chuanglin Fang , Zhitao Liu , Lingyu Meng
Geography and Sustainability ›› 2026, Vol. 7 ›› Issue (2) : 100416
Amidst rapid digitalization and pressing environmental challenges, understanding the environmental implications of digital transformation is crucial for sustainable urban development. Yet, the complex, potentially nonlinear digitalization-environment relationships remain underexplored. This study has two objectives: first, to quantify the nonlinear causal impacts of digital transformation on pollution mitigation and carbon reduction; and second, to unravel the mediating pathways that drive these outcomes. We employ Double Machine Learning (DML) on panel data from 2013 to 2022 across China’s four mega-urban agglomerations to identify the nonlinear environmental impacts of digital transformation. Mediation analysis is then used to examine the technology, structure, governance, and scale pathways. Despite overall progress in both digital transformation and environmental performance, significant regional variations persist. Our DML analysis reveals distinct nonlinearities: an S-shaped relationship between digital transformation and pollution mitigation, and a more complex N-shaped curve for the digital transformation-carbon reduction nexus. Mediation analysis further reveals complex mechanism: while the structure path consistently promotes environmental benefits, technology and scale factors show negative effects, and governance impacts diverge, promoting pollution mitigation but hindering carbon reduction. Translating digital transformation into environmental benefits necessitates a multi-pronged strategy. Key imperatives include prioritizing green technological innovation over sheer digital expansion to mitigate adverse scale effects, and restructuring energy systems towards renewable sources. Furthermore, digital governance must be wielded judiciously, with accountability to enhance specific environmental goals. This research reveals the intricate and context-dependent nature of digital transformation’s environmental effects, providing data-driven insights for regional policies aiming to leveraging digitalization for environmental sustainability, particularly in urban contexts.
Digital transformation / Environmental sustainability / Pollution mitigation / Carbon reduction / Double machine learning
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