The impact of the digital economy on regional sustainable development: empirical analysis based on the mediation effect of green innovation capability

Abstract

The digital economy acts as a powerful catalyst for advancing China’s green and sustainable development. Utilizing provincial-level panel data covering 2015–2021, this study constructs a multidimensional index to measure digital economy development and adopts a two-way fixed effects (TWFE) model to examine its impact on regional sustainable development (RSD). In addition, this study applies a mediation effect model to investigate how the transmission mechanism operates via green innovation capability (GINNO). The empirical results indicate that the digital economy significantly contributes to regional sustainability by enhancing resource efficiency and economic quality, with GINNO playing a vital mediating role in this low-carbon transition. Further analysis of heterogeneity suggests that the digital economy’s promotive effect exhibits a heightened responsiveness in regions with superior baseline ecological and economic development. These findings provide policy-relevant insights into advancing RSD through digital-green synergy and technological innovation.