The Dual Effects of Digital Economy Policies in China: Machine Learning Evidence from Industrial and Environmental Impacts

Digital economy faces endogeneity challenges in policy evaluation. This paper employs a machine learning-assisted policy evaluation framework to delve into the impact of the digital economy on industrial structure transformation and environmental quality improvement. Results show: (1) The digital economy policy has a significant positive impact on industrial structure upgrading and environmental quality improvement. (2) Digital economy infrastructure and green investment mediate policy effects. Policymakers should strengthen the precise alignment of digital economy policies with regional differences, improve digital economy infrastructure to unleash policy effectiveness, optimize green investment mechanisms, enhance policy coordination and dynamic assessment, and promote pilot experience and capacity building.