Unleashing the power of data element markets: Driving urban green growth through marketization, innovation, and digital finance

Achieving sustainable urban growth is vital for fostering cities where economic progress and ecological balance coexist. The rapid evolution of the digital economy presents new opportunities to accelerate urban green development. This study, drawing on China's extensive big data framework, applies a Differences-in-Differences model to explore how the construction of data element markets influences urban sustainability and the mechanisms underlying this relationship. The findings indicate that data element market development significantly enhances urban green growth through three key mediators: improving marketization levels, driving green technological innovation, and expanding digital inclusive finance. Additionally, the study highlights that regions with stronger green development initiatives, lower environmental pressures, and higher economic prosperity experience a more pronounced positive effect. These insights provide a foundation for policy recommendations aimed at leveraging data element markets to facilitate urban sustainability, promote economic resilience, and foster long-term ecological progress.