From bits to green: Unraveling the digital economy's influence on natural resource efficiency.

ABSTRACT

This study explores the impact of the digital economy (DE) on natural resource efficiency (NRE) across 275 Chinese cities between 2011 and 2021. Through a comprehensive empirical analysis, we find that the DE significantly positively affects NRE. A key moderating factor in this relationship is green technological innovation (GTI), focusing on the quality rather than the quantity of green technology. Our study also uncovers regional variations of moderating effect. Additionally, we identify several mechanisms through which the DE contributes to enhanced NRE, including the transformation of industrial structure and improvements in green total factor productivity. A detailed heterogeneity analysis shows that the DE's impact on NRE varies according to city-specific factors such as natural resource endowment, city size, environmental regulations, and administrative levels. These findings provide a more nuanced understanding of how the DE influences NRE at the urban level, contributing to the broader discourse on sustainable development in the digital age. Our research offers policy recommendations and potential pathways for cities to leverage the DE for greater natural resource efficiency.