Internet development and green economic efficiency in China: A new perspective of government's dual goal constraints and citizens' green lifestyle

Abstract The rapid development of the information and communication technologies (ITCs) and the internet is deeply embedded in all aspects of economic life. With its high economic efficiency and significant green attributes, digitalization provides opportunities for promoting a green economy. However, the effects of digitalization and internet development on China's green economic efficiency are understudied. There is also a gap in research on how digitalization and internet development influence Chinese citizens to choose a green lifestyle from the consumer perspective. This article aims to enrich the research in this field by exploring the effects of internet development on green economic efficiency in China. The article further analyses how digitalization and internet development can encourage citizens to choose a green lifestyle. Drawing on panel data from 257 cities in China spanning the period from 2012 to 2020, this article utilizes the entropy method and the SBM‐GML model to assess the correlation between internet development and green economy efficiency. We also employ the basic regression model, system GMM model, mediation effect model and adjustment model to study the impact of internet development on urban green economic efficiency. The study found that internet development and green economic efficiency face constraints that are inherent in the government's dual economic growth and environmental goals and targets. We also found that digitalization and internet development can promote citizens' adoption of green lifestyles through the fostering of citizen environmental concern and green consumption habits. Further analysis shows that internet development has a more pronounced effect on green economic efficiency in eastern cities, large cities, non‐resource‐based cities and cities with higher economic development. These findings provide useful references for developing countries that promote urban green economic efficiency through digitalization and internet development.