China's green transformation under the dual incentives of economic growth and environmental protection

Abstract

Drawing on panel data from 31 provinces in China from 2008 to 2020, this study examines the effects of green transformation on regional economic growth and environmental protection. Results demonstrate that green transformation significantly improves both regional economic growth and environmental sustainability. This outcome is robust under a series of validation tests. Moreover, digital economy policies positively moderate the green transformation process, significantly increasing the efficiency of environmental measures and the achievement of related objectives. However, for heterogeneity tests show that the impact of green transformation can differ according to population density. Overall, these results underscore the importance of formulating targeted regional green transformation strategies, especially in developing countries experiencing rapid economic growth.