Assessing the impact of digitalization on environmental efficiency: Do population factors and institutional factors Matter?

Xiaoli Hao, Yuhong Li, Shufang Wen and Lulu Zhang
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Xiaoli Hao: Center for Innovation Management Research, Xinjiang University, Urumqi 830047, China
Yuhong Li: School of Economics and Finance, Xi’an Jiaotong University, Xi'an 710049, China
Shufang Wen: Center for Innovation Management Research, Xinjiang University, Urumqi 830047, China
Lulu Zhang: College of Sciences, Shihezi University, Shihezi 832003, China

Journal of Information Economics, 2024, vol. 2, issue 1, 80-101

Abstract: The digital transformation provides an opportunity for the development of a green and low-carbon economy. This study used panel data collected from 30 Chinese provinces between 2011 and 2018, and assessed the impact of digitization (Dig) on environmental efficiency (EE). Quantile regression is employed to scrutinize the evolution of the marginal effect. From the perspectives of population and institutional factors, this study empirically investigates nonlinear relationships and potential mechanisms using Hansen threshold and mediation models. The findings reveal several key insights. Overall, levels of digitization and environmental efficiency (EE) are increasing with regional dispersion expansion, indicating a “polarization” characteristic. The impact of digitization on EE exhibits noticeable stage and regional heterogeneity. Analysis of population factors reveals that population structure, population size, and human capital trigger a sharp “marginal increase” of positive effects with single thresholds of 0.8155, 7.2284, and 11.0497, respectively. Analysis of institutional factors highlights the significance of fiscal policy quality (tax proportion), education expenditure, and tax system structure as important intermediaries. Finally, this paper presents corresponding policy implications.

Keywords: Digitalization; environmental efficiency; population factor; institutional factor (search for similar items in EconPapers)
Date: 2024
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