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<p>Achieving a circular economy (CE) is a crucial aspect of promoting sustainable development. In particular, the digital economy (DE) presents a new opportunity to advance the CE. However, the relationship between the DE and CE has not been fully investigated in previous research. This study examines whether the DE drives CE development across 277 Chinese cities, complementing existing studies by providing a comprehensive explanation of the role of the DE in promoting the CE and fostering sustainable development. The relevant findings are threefold. First, urban DE can significantly enhance the CE, and this result holds following several robustness tests for endogeneity and exogenous policy shocks using the instrumental variable method and the difference-in-differences model. Regarding mediating effects, the DE supports CE development by increasing scientific and technological innovation and optimizing the industrial structure. Spatial correlation analysis reveals that the DE facilitates CE implementation in a region and its neighboring regions. Additionally, as economic development progresses, DE has a double-threshold effect on CE development. Finally, heterogeneity analysis demonstrates that non-resource-based cities benefit more from the DE’s CE promotion than resource-based cities. Furthermore, the promotional effect of the DE on the CE exhibits a trend of steadily strengthening as the CE improves. This study provides strong supporting evidence for leveraging the DE and CE to advance sustainable development.</p> Graphical abstract <p></p>

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Digitalization and sustainable development: How could digital economy drive circular economy development in China?

  • 期刊论文

  • 发表日期：

    2025年4月3日

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  • Yingshan Sun,
  • Rui Zhang,
  • Xiaotong Qie,
  • Dongxue Li,
  • Xiaoyi Zhang,
  • Xiaolu Du,
  • Yue Wang

摘要

Achieving a circular economy (CE) is a crucial aspect of promoting sustainable development. In particular, the digital economy (DE) presents a new opportunity to advance the CE. However, the relationship between the DE and CE has not been fully investigated in previous research. This study examines whether the DE drives CE development across 277 Chinese cities, complementing existing studies by providing a comprehensive explanation of the role of the DE in promoting the CE and fostering sustainable development. The relevant findings are threefold. First, urban DE can significantly enhance the CE, and this result holds following several robustness tests for endogeneity and exogenous policy shocks using the instrumental variable method and the difference-in-differences model. Regarding mediating effects, the DE supports CE development by increasing scientific and technological innovation and optimizing the industrial structure. Spatial correlation analysis reveals that the DE facilitates CE implementation in a region and its neighboring regions. Additionally, as economic development progresses, DE has a double-threshold effect on CE development. Finally, heterogeneity analysis demonstrates that non-resource-based cities benefit more from the DE’s CE promotion than resource-based cities. Furthermore, the promotional effect of the DE on the CE exhibits a trend of steadily strengthening as the CE improves. This study provides strong supporting evidence for leveraging the DE and CE to advance sustainable development.

Graphical abstract