Bridging the East-West environmental development gap in China: the role and mechanisms of the digital economy in promoting common prosperity

This study aims to examine the relationship between the digital economy and the environmental development gap between the eastern and western regions of China. Using urban panel data from 2003 to 2021, we apply the entropy method to measure the development levels of the digital economy and environmental performance across cities. The study systematically analyzes the impact and mechanisms of the digital economy in narrowing the environmental development gap. Furthermore, it examines the effects of its linkage on promoting regional convergence and common prosperity. The findings show that: First, the development of the digital economy significantly reduces the environmental development gap between the eastern and western regions. Second, mechanism analysis reveals that the digital economy promotes green technological innovation, improving carbon productivity and energy efficiency, thereby helping to narrow the gap. Third, the digital economy fosters environmental development in neighbouring cities, exhibiting significant spatial spillover effects. Fourth, digital economy exhibits significant linkage effects in promoting environmental equity and supporting the realization of common prosperity, with micro-level mechanisms indicating that the digital economy can increase the incomes of rural residents. Overall, the development of the digital economy not only narrows regional environmental disparities but also promotes broader economic and social objectives.