Does the integration of digital and real economies promote urban green total factor productivity? Evidence from China

Enhancing urban green total factor productivity (UGTFP) is of great significance in driving the green transformation of cities. The integration of the digital economy and real economy (IDR) offers a novel approach to improving UGTFP. This paper constructs a theoretical analytical framework to examine the impact of IDR on UGTFP. Utilizing a range of econometric models and Chinese urban data, this paper empirically analyzes the influence, mechanism, and spatial spillover effect of IDR on UGTFP. The findings reveal that China's IDR is currently at a stage of low integration, exhibiting significant regional disparities, with a spatial distribution pattern declining from east to west. IDR can significantly enhance UGTFP, and the conclusion is supported by robustness tests. Heterogeneity analysis indicates that the positive effect of IDR on UGTFP is more pronounced in the eastern and western regions, as well as in areas with a large Internet scale. The mechanism test suggests that economic agglomeration can significantly amplify the promotional effect of IDR on UGTFP. IDR can boost UGTFP by elevating innovation levels and optimizing labor resource allocation. Further exploration reveals a significant positive spatial spillover effect of IDR on UGTFP. These insights not only offer a practical pathway for green transformation but also provide empirical evidence for policymakers to formulate scientific policies, enhance coordination, and improve data governance, thereby facilitating high-quality and green economic development.