The Impact of Digital Economy Development on Improving the Ecological Environment—An Empirical Analysis Based on Data from 30 Provinces in China from 2012 to 2021

Danyu Huang () and Chunye Huang
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Danyu Huang: School of Economics, Guangdong University of Technology, Outer Ring West Road, Panyu District, Guangzhou 510006, China
Chunye Huang: Gies Business School, University of Illinois, Urbana-Champaign, 610 East John Street, Champaign, IL 61820, USA

Sustainability, 2024, vol. 16, issue 16, 1-19

Abstract: The rapid progress in science and technology has ushered in a new era of organized and efficient development within the digital economy. China has repeatedly emphasized the need for high-quality development that prioritizes ecological conservation. The central challenge is to balance economic growth with environmental protection, ensuring sustainable development. Understanding the environmental impact of the digital economy is critical for achieving green growth in China. This paper investigates the relationship between the digital economy and ecological protection, using data from 30 provinces and cities in China between 2012 and 2021. Through empirical analysis, including a two-way fixed effect model, mechanism analysis, regional difference analysis, and robustness tests, the study found a significant negative correlation between the digital economy and environmental pollution. This indicates that the development of the digital economy can effectively improve the ecological environment. In the information age, seizing the opportunities presented by the digital economy is crucial. By deepening the digital industry and leveraging digital technologies, China can enhance enterprise production, promote innovation, and create a positive feedback loop between economic development and environmental optimization. However, it is essential to recognize regional disparities in digital economy development and work to narrow these gaps, ensuring balanced and sustainable growth across the country.

Keywords: digital economy; environment pollution; entropy evaluation method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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