Digital economy, environmental expenditure, and green total factor productivity

Xiao Cui and Pingrui Li

Finance Research Letters, 2025, vol. 73, issue C

Abstract: This paper, based on city-level panel data from 2011 to 2021, examines the link between the digital economy and green total factor productivity. The findings demonstrate that the digital economy enhances green total factor productivity, with environmental expenditure actively moderating this effect. Furthermore, the research identifies significant variations in how the digital economy influences green total factor productivity across cities differing in population size and geographic location. These findings suggest that the application of the digital economy not only fosters green development in cities but also that its effectiveness is shaped by regional characteristics.

Keywords: Digital economy; Environmental expenditure; Green total factor productivity (search for similar items in EconPapers)
JEL-codes: D24 O32 O33 Q56 Q58 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016532

DOI: 10.1016/j.frl.2024.106624

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