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<p>The increasingly severe environmental problems hinder high-quality green development. Yet continuous technological progress makes it possible to protect the environment by strengthening the environmental governance system. This study utilizes patent data to effectively explore the effects of China’s digital economy (<i>Dgc</i>) on environmental governance from two dimensions: cities and enterprises. Fundamentally, we address the potential mechanisms between them through innovative capacity and vitality. The findings demonstrate that the <i>Dgc</i> robustly improves environmental governance at the city and firm levels. Yet the associated effects will be shaped by multiple factors: geographical locations, enterprises’ attributes, enterprises’ profit, and cash holdings. Furthermore, innovative capacity and vitality are two instrumental channels through which the <i>Dgc</i> substantially fosters environmental governance. The findings provide compelling evidence to showcase the fundamental pathways of realizing the “double dividend” of digitalization and environmental governance.</p>

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Can digital economy strengthen environmental governance? Insights from innovative capacity and vitality

  • 期刊论文

  • 发表日期：

    2026年2月3日

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  • Shuai Che,
  • Miaomiao Tao,
  • Jun Wang,
  • Dongkai Yang

摘要

The increasingly severe environmental problems hinder high-quality green development. Yet continuous technological progress makes it possible to protect the environment by strengthening the environmental governance system. This study utilizes patent data to effectively explore the effects of China’s digital economy (Dgc) on environmental governance from two dimensions: cities and enterprises. Fundamentally, we address the potential mechanisms between them through innovative capacity and vitality. The findings demonstrate that the Dgc robustly improves environmental governance at the city and firm levels. Yet the associated effects will be shaped by multiple factors: geographical locations, enterprises’ attributes, enterprises’ profit, and cash holdings. Furthermore, innovative capacity and vitality are two instrumental channels through which the Dgc substantially fosters environmental governance. The findings provide compelling evidence to showcase the fundamental pathways of realizing the “double dividend” of digitalization and environmental governance.