Digital Rural Transformation, Ecological Space Transition, and Territorial Sustainability: Evidence from China’s Taobao Villages

The rapid growth of rural e-commerce is reshaping rural development, yet its implications for territorial sustainability remain unclear. Using panel data from 1503 Chinese counties from 2014 to 2022, the effects of Taobao Village development and the mechanism of territorial sustainability are examined through causal, spatial, and mechanism analyses. The results show the following: (1) Taobao Village development significantly improves territorial sustainability, with stronger effects observed in central and northeastern China, while the impacts vary considerably across regions due to differences in economic foundations, digital infrastructure, and land-use conditions. (2) Spatial analysis reveals that the sustainability-enhancing effects of Taobao Villages are mainly localized, with no significant spillover effects to neighboring counties, indicating the constraints of existing administrative and spatial governance systems. (3) The ecological land-use change induced by Taobao Village development is characterized by quantity reduction with potential quality upgrading. The development of Taobao Village has reduced the ecological land area, but it does not mean a decline in ecological functions. The converted land may be composed of low-quality ecological plots, and the fiscal benefits driven by e-commerce and China’s land use compensation policy may maintain or enhance the overall ecological function. These findings highlight the importance of integrating digital rural development with ecological sustainability and territorial spatial governance. The study provides policy implications for promoting resilient and sustainable rural transformation through differentiated land-use strategies.