Digital Economy Spatial Correlation Network and Green Efficiency of Water Resources in China

Within the framework of green sustainable development, the relationship between the digital economy (DE) and the green efficiency of water resources (GEWR) has received increasing attention. This study uses panel data from 30 provincial-level regions in China covering 2014–2023, comprising 300 province-year observations. The objective of this study is to examine the relationship between the digital economy spatial correlation network and GEWR and to explore the potential pathway and moderating role of environmental regulation. Accordingly, it is hypothesized that the DESCN is positively associated with GEWR, that industrial structure upgrading (ISU) and water conservancy industry development (WCI) constitute potential pathways related to this association, and that environmental regulation positively moderates the relationship between DC and GEWR. The super-efficiency slacks-based measure (SE-SBM) model serves as the tool for measuring the level of the GEWR. The digital economy spatial correlation network (DESCN) is constructed through a modified gravity model, which helps analyze interregional DE connections and the spatiotemporal characteristics of GEWR. Furthermore, empirical analysis is conducted to thoroughly examine the relationship between the DESCN and GEWR. The results showed that: (1) the degree centrality (DC) of the DESCN was positively and significantly associated with GEWR; (2) DC was positively and significantly associated with ISU and WCI, supporting H2a and H2b at the level of variable relationships but providing only preliminary evidence concerning the proposed pathways because the corresponding indirect effects were not estimated; and (3) the positive and statistically significant interaction between DC and environmental regulation (ER) indicates that ER strengthens the positive relationship between DC and GEWR.