Navigating the Path to Carbon Neutrality Through Dynamic Digital Governance: Evidence From a Policy‐Upgrade Perspective

ABSTRACT The intensifying global climate crisis necessitates a rapid transition toward systemic decarbonization, positioning urban carbon neutrality as a cornerstone of international sustainable development agendas. Within this framework, digital governance serves not merely as a technical instrument but as a critical transformative force for urban green transitions. However, most existing research conceptualizes digital interventions as static events, overlooking the dynamic marginal dividends generated by iterative policy refinements. This study addresses this gap by investigating the evolutionary path from the Information Benefiting the People (IBP) pilot to the Internet + Government Services (IGS) initiative, framing this transition as a strategic digital policy upgrade. To ensure robust causal inference, we employ a double machine learning (DML) framework and panel data from 266 Chinese cities. The empirical findings provide compelling evidence that digital governance significantly propels cities toward carbon neutrality. Crucially, this environmental impact is substantially amplified following the policy upgrade, confirming that the continuous optimization of digital platforms creates a synergy effect essential for long‐term decarbonization. Mechanism analysis reveals that this dynamic empowerment is driven by the structural optimization of governmental attention, enhanced administrative efficiency, and the mobilization of public environmental participation. Furthermore, the efficacy of policy upgrading exhibits significant heterogeneity, with more pronounced benefits observed in larger cities and high‐innovation hubs. These findings underscore that the path to carbon neutrality is not merely a matter of technical adoption but of continuous institutional evolution. This research offers a scalable blueprint for global policymakers to leverage dynamic digital governance as a catalyst for sustainable urban transitions.