This analysis shows nonlinear effects of the digital economy on green innovation in China, suggesting customized digital strategies for development.
This study uses panel data from 30 Chinese provinces during 2011–2020 and employs a panel quantile regression model to investigate the nonlinear effects of the digital economy on green innovation. The results indicate that the digital economy significantly boosts green innovation, yet this relationship follows an inverted U-shaped pattern, reaching peak effectiveness in provinces with moderate green innovation levels. Mechanistically, information infrastructure development and human capital accumulation emerge as key drivers underpinning this nonlinear interaction. Moreover, we investigate the differential impacts of the digital economy on quantile-based green innovation heterogeneity across coastal and inland regions. These findings unveil both the nonlinear dynamics and spatial heterogeneity in the digital economy’s impact on green innovation, thereby providing nuanced policy frameworks for developing nations to customize digital strategies.
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Liu et al. (2025) studied this question.
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