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Digital–green integration as a driver of urban economic transformation: mechanisms and pathways
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DOI：10.1016/j.jik.2026.101117.png)
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Abstract
En 中文
Effective drivers of urban economic transformation have remained underexplored, and previous research has examined the mechanisms of digitalization or green technologies as promoters. This study constructs the multisector general equilibrium model intended to theoretically explain the driving mechanisms of the integration of digitalization and green technologies (IDGT) for urban economic transformation. Based on path branching theory, we also analyze how to leverage digitalization to identify suitable green technological innovation pathways to foster the urban economic transformation. To do so, this study conducts an empirical analysis adopting 262 Chinese cities over the 2011–2021 period as the research data. Benchmark regression results indicate that the IDGT significantly promotes urban economic transformation. Mechanism analyses reveal that IDGT primarily drives urban economic transformation through labor allocation optimization, output growth acceleration, and carbon emissions reduction. Further analysis reveals that digitalization has an inverted U-shaped impact on green related technological diversification, while its impact on green unrelated technological diversification follows a U-shaped curve. Large and coastal cities can make full use of digitalization to advance green unrelated technological diversification and are better to adopt the radical technological innovation pathway, while small and medium cities, as well as inland cities are still exploring the green technological innovation pathway. This study enriches the theoretical mechanisms of digitalization and green technologies and provides empirical evidence for fostering urban economic transformation from the IDGT perspective.
Keywords:
IDGT
Multisector general equilibrium model
Urban economic transformation
Green related and unrelated technological diversification
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C21
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