Bytes drive green: decoding the global digital economy’s environmental impact

This paper examines the impact of digital economy on environmental performance using data from 153 countries spanning the period 2005 to 2022. By developing a comprehensive framework for global digital economy and employing both fixed effects and dynamic estimation techniques, we explore potential for digital economy to contribute to environmental performance objectives. The analyses suggest that the evolution of global digital economy has significantly enhanced environmental performance. The finding remains robust after undergoing a series of rigorous tests. Additionally, further investigation into the mechanisms involved reveals that the positive impact of digital economy on environmental performance is achieved through the promotion of green technological innovation and the optimization of energy structures. Furthermore, heterogeneity analysis indicates that this positive effect is more significant in nations with more advanced economies and higher-quality institutions. This study confirms the critical role of digital economy in driving environmental performance from a national perspective, providing empirical evidence and policy insights for countries to achieve greener and more digital development.