Does the Digital Economy Promote Green Land Use Efficiency?

Na Lu, Tiantian Shan, Wen Li, Xuan Liu and Weidong Wang ()
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Na Lu: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Tiantian Shan: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Wen Li: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Xuan Liu: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Weidong Wang: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China

Sustainability, 2025, vol. 17, issue 16, 1-22

Abstract: Land is a critical factor of production that contributes significantly to economic growth. However, conventional land use pattern in China has resulted in serious environmental pollution. Now enhancing green land use efficiency (GLUE) has emerged as an effective strategy for improving environmental quality. The development of the digital economy (DE), characterized by low cost and high efficiency, has demonstrated considerable potential in reducing environmental pollutants and enhancing resource allocation. This study employs an extensive analytical framework to analyze the impact of DE development on GLUE across 267 cities in China from 2011 to 2019. The results show that DE exerts a significant effect on improving GLUE, which remains valid after the execution of endogeneity and robustness tests. The research on mechanisms indicates that this promotional effect is primarily achieved through the innovation in green technology and the optimization of industrial structure. Extended empirical tests indicate there is a nonlinear trend, wherein the positive effect increasingly intensifies after green industry innovation and industrial structure optimization exceeds threshold values. There is also a significant short term spillover effect of DE on GLUE, supplemented by long term effects. These findings substantially improve our comprehension of the connection of DE and land use, while providing practical policy recommendations for promoting environmentally sustainable development and land green utilization.

Keywords: digital economy; green land use efficiency; nonlinear effect; spatial spillover effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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