Digitalization and environment governance: does internet development reduce environmental pollution?

In the era of information economy, the integration of the internet and traditional industries is pushing the rapid transformation of the world economy in a more innovative, smarter, and greener direction. Based on the panel data for 30 Chinese provinces for the 2006–2017 period, the level of China's internet development is comprehensively evaluated using the full array polygon graphic index method. The spatial Durbin model and threshold model are used to empirically analyze the impact of internet development on environmental quality. The results indicate that China's environmental pollution has a significant spatial spillover effect. Internet development can not only significantly reduce local environmental pollution, but also environmental pollution in neighboring areas. The regression results of the mediation effect indicate that internet development mainly affects environmental pollution by improving technological innovation, industrial upgrading, human capital and financial development. Finally, policy suggestions are proposed from the aspects of strengthening collaborative environmental governance and increasing internet infrastructure investment.