Innovation in emerging economies: Research on the digital economy driving high-quality green development

This paper measures the level of urban digital economy and high-quality green development in China, seeking to reveal the mechanisms and influences of the digital economy in a unified framework. The results demonstrate that the digital economy can directly drive high-quality green development, and industrial structure adjustment and green technology innovation are significant mediating mechanisms. Meanwhile, it has positive nonlinear effects on high-quality green development, but the marginal effects are clearly diminishing. Further study shows city-specific heterogeneity effects, and digital dividends in eastern cities, key urban agglomerations, and high-level cities are more fully released. Moreover, the digital economy can affect high-quality green development in neighboring areas through spatial spillover effects. The conclusions are robust after adopting instrumental variables and smart city construction as a quasi-natural experiment. The findings could provide decision-making references for policymakers and professionals in emerging economies to enhance green development.