Digital Economy and Green Total Factor Productivity: Theoretical Connotation, Mechanism of Action, and Research Progress

Abstract

In the context of the growing pressure on the climate, the growing severity of the resource and environmental limitations, green development has become a important path of high-quality economic development. The quality of the economic development is commonly measured with the help of green total factor productivity (GTFP), integrating resource consumption and pollution emissions into the conventional productivity model. At the same time, the rapid growth of digital technologies, including big data, cloud computing and artificial intelligence, has turned the digital economy into one of the main factors of industrial restructuring and transformation of production modes. In this regard, scholars have increasingly shown interest in how the digital economy affects GTFP. The paper is a systematic review of the existing research based on which the relevant literature is evaluated regarding theoretical connotation, mechanisms, and research methods. Available literature suggests that the digital economy mainly enhances GTFP by technological innovation, human capital accumulation, and industrial upgrading, and also has spatial spillover effects. Nevertheless, it is important to note that, although much has been made, future studies need to widen the scope of cross-border comparisons, micro-mechanisms, and how the digital economy interacts with environmental regulation.