Digital platforms as enablers of circular economy practices: Insights from a Chinese province?

Abstract

The transition from a linear to a circular economy (CE) is critical for sustainable development, particularly in resource-intensive economies like China. This study examines the role of digital platforms as enablers of the Reduce, Reuse, and Recycle (3Rs) principles across Chinese provinces. By integrating Schumpeterian Innovation Theory, the Resource-Based View (RBV), and Institutional Theory, we develop a theoretical framework explaining how digital technologies—such as artificial intelligence (AI), blockchain, Internet of Things (IoT), and big data analytics—enhance resource efficiency, industrial symbiosis, and waste recycling. Using provincial panel data from 2010 to 2024, we empirically assess the impact of digitalization on CE performance through panel econometric models and spatial econometrics. Our findings suggest that higher levels of digital adoption have mixed impact on circular economy. The impact varies across regions, with coastal provinces benefiting more due to advanced digital infrastructure. The results provide policy implications for integrating digital technologies into CE strategies, particularly in emerging economies. This study contributes to the growing literature on digital sustainability by offering empirical evidence on the digitalization-CE nexus and proposing policy recommendations for achieving a tech-enabled circular economy.