Digital economy and urban green innovation: Evidence from China’s Cities

Abstract

Abstract This article assesses the digital economy and green innovation in Chinese cities from 2011 to 2020 using an Epsilon-Based Measure (EBM) and green patent data. We explore the causal effect and mechanism of the digital economy and green innovation. The results showed that the digital economy has significantly increased green innovation and passed a series of robustness tests. The promotion effect is heterogeneous in terms of geographic location and city size, and the positive effect of the digital economy becomes more significant over time. Based on the intermediary effect and grouping regression, it is found that industrial structure upgrading and human capital advancement are important mechanisms for the digital economy to drive green innovation. This paper analyzes the mechanism of the digital economy and its effect on green innovation at the city level, enriching the digital economy theory on urban green development and providing research support for urban development transformation.