Breaking the natural resource curse: Can digital government promote natural resource efficiency?-Evidence from the National Pilot Information for the People policy

Abstract

Enhancing natural resource efficiency is an imperative requisite for mitigating the challenges associated with the natural resource curse, particularly in the realms of digital government governance and the application of digital technology. Consequently, this study utilizes panel data spanning the period from 2000 to 2021, encompassing 277 prefecture-level cities in China. We employ the policy framework of " the National Pilot Information for the People policy" as a quasi-natural experiment and employ a double-difference model to scrutinize the intricate relationship between digital government initiatives and natural resource efficiency. This analysis incorporates an exploration of heterogeneity through the lenses of factor inputs and economic development, simultaneously investigating the moderating impacts of digital technology and the rule of law environment. The primary findings underscore that digital government significantly fosters natural resource efficiency, with consequential benefits observed in green innovation, regulatory practices, disaster mitigation, and the strategic integration of planning efforts. Notably, the study identifies a positive moderating effect exerted by digital technology and the rule of law environment in shaping the nexus between digital government interventions and natural resource efficiency. Additionally, our research reveals a notable facilitating effect of digital government in mature resource-based cities and those characterized by higher levels of R&D investment, fiscal decentralization, and economic development. This study stands to offer substantive policy implications, serving as a valuable reference for China and other developing nations seeking to overcome the challenges posed by the natural resource curse and advance natural resource efficiency.