Digital Economy Promotes the Improvement of Urban Living Environment: Evidence from Provincial Panel Data of China

The digital economy has become an important aspect of global competition and a key force in restructuring global factor resources, reshaping economic structures, and changing the landscape of global competition. This paper defines the concept of urban living environment, analyzes the mechanisms through which the digital economy affects it, and empirically examines the effects and transmission mechanisms of the digital economy in enhancing urban living environments based on panel data from 30 Chinese provinces from 2012 to 2022. The study finds that the accelerated development of the digital economy significantly contributes to improvements in urban living environments. Specifically, the digital economy exerts its positive influence through the intermediary paths of technological innovation, government governance, and changes in resident behavior. Moreover, its effect is more pronounced in provinces with lower investment in industrial pollution control and relatively lax environmental regulations. From a regional perspective, the digital economy has a greater impact on improving urban living environments in the eastern region than in the central and western regions.