From Tech to Green: The Potential of Company Digitalization in Mitigating Urban Air Pollution

Mingying Zhu

Review of Development Economics, 2026, vol. 30, issue 1, 438-457

Abstract: This study provides robust and significant results that verify the positive effect of company digitalization on local urban air quality. The green impact of digitalization shows clear lag effects, as early‐stage digital development in companies lays the foundation for subsequent improvements in the urban environment. Furthermore, local enterprise digitalization also contributes to reducing pollution spillover to neighboring cities. Mechanism analysis reveals that digital technology promotes green innovation, while also benefiting companies in expanding services and driving urban industrial upgrading. Particularly, the green effects of digitalization are prominent in state‐owned enterprises, the manufacturing sector, and medium‐sized companies. At the urban level, the effects are more pronounced in central regions, megacities, and areas with higher pollution levels. These findings suggest that investing in digital transformation can be a powerful tool for urban planners and industry leaders to achieve sustainable development goals while improving air quality.

Date: 2026
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