Digital Economy, Technological Innovation, and Environmental Pollution in Different Regions: An Analysis Based on a Threshold Model

Abstract

The digital economy significantly promotes fundamental innovation activities and impacts environmental pollution through mechanisms such as optimizing resource allocation, accelerating knowledge flow, and enhancing innovation service efficiency. Based on panel data from 29 provinces in China from 2010 to 2020, this paper employs a panel threshold regression model to investigate the relationship between the digital economy, fundamental innovation, and environmental pollution. The study finds a significant negative correlation between the level of digital economy development and environmental pollution. As the digital economy level increases, the environmental pollution levels in the relevant provinces significantly decrease. Additionally, the impact of technological innovation on the relationship between the digital economy and environmental pollution exhibits nonlinear characteristics. When the level of technological innovation exceeds a specific threshold, the effect of the digital economy on reducing environmental pollution is significantly enhanced. There are regional differences in how digital economy development and technological innovation levels affect environmental pollution. In the eastern coastal regions, where the digital economy and technological innovation are more advanced, the reduction effect on environmental pollution is more pronounced, whereas the effect is relatively limited in the central and western regions. This study provides theoretical support and decision-making references for the construction of ecological civilization and green, low-carbon development.