1. Introduction
With global green development agendas rising, the transformation of green productivity faces many challenges. These include the need to increase the efficiency of the implementation of environmental policies, the imbalanced regional green innovation capabilities, and the stark negative environmental externalities linked to traditional production modes. New approaches to tackling these issues are made possible by the development of digital intelligence technologies. Furthermore, the 2024 government work report of China proposed for the first time the implementation of the “Artificial Intelligence+” initiative, with an emphasis on raising the level of urban digital intelligence (
https://www.gov.cn/yaowen/liebiao/202503/content_7013163.htm?s_channel=5&s_trans=7824452999_ accessed on 23 July 2025). The extensive application of digital technologies, including the Internet of Things and big data, facilitates accurate monitoring of energy consumption and emissions during the production process. Artificial intelligence algorithms optimize resource allocation, thereby enhancing the efficiency of green technology innovation. It will reconstruct environmental governance systems with transparent and traceable mechanisms by using blockchain and other trust technologies. The enabling mechanisms of digital intelligence technologies break through the spatiotemporal limitations of traditional environmental governance and promote innovative green development models via market-oriented allocation of data elements. Therefore, this article aims to investigate the effects and mechanisms through which digital intelligence contributes to green effects, offering insight for advancing urban digital intelligence transformation, achieving carbon peaking and neutrality goals, and fostering high-quality economic development.
Literature on digital intelligence and green development primarily addresses three aspects. Firstly, researchers explore digital intelligence and its economic effects. The definitions of digital intelligence emerge from the viewpoint of technological innovation (Vial, 2019) [
1]. Digital intelligence encompasses the enhancement of intelligent, digital, and networked levels of economy and society through the profound integration of digitalization and intelligence. This process relies on cooperation, collaboration, and sharing of data elements and digital technologies, utilizing “5 G+Industrial Internet” and artificial intelligence technologies (Kraus et al., 2022) [
2]. Few studies directly measure the level of digital intelligence. Scholars mainly adopt three distinct methods to measure digitalization or intelligence separately. The indicator method employs the ratio of enterprise investment in information technology or intangible assets to measure digital transformation and uses industrial robot density to measure intelligence level (Zou et al., 2024) [
3]. The assignment method employs dummy variables to identify whether enterprises have experienced digital or intelligent transformation (Ferreira et al., 2020) [
4]. The text analysis method integrates definitions and policy documents to summarize characteristic word data pools, employing web crawling technology to analyze enterprise annual reports (Mao, 2025) [
5]. The economic effects of digital intelligence indicate that digital technologies facilitate knowledge management, thereby improving the identification, transformation, and application of tacit knowledge as well as organizational efficiency (Cheng et al., 2025) [
6]. Digital intelligence enhances resource allocation and integration efficiency, facilitates the effective flow of data elements, and strengthens enterprises’ innovation capabilities, resilience to disruption, and green development capabilities (Su and Wu, 2024) [
7]. The enhancement of corporate governance is notable, as it mitigates information asymmetry, irrational managerial decision-making, and audit costs (Xin et al., 2024) [
8].
Secondly, researchers investigate green development and its driving factors. Green development denotes the process of economic development aimed at achieving intensive energy and resource utilization, minimizing pollutant emissions, and enhancing production efficiency (Georgeson et al., 2017) [
9]. Recent studies on the measurement of green development include the indicator construction method, model-based approaches, and Data Envelopment Analysis (DEA). (1) The indicator construction method utilizes pollution emission levels (Marrucci et al., 2024) [
10] or develops comprehensive indices based on economic, resource environment, and transformation support dimensions [
11,
12,
13,
14]. (2) Model-based approaches involve the use of mathematical models, such as system dynamics and input-output models, to simulate and predict trends in economic green development [
15]. Wu and Chen (2024) utilized the Input-Output Analysis method to assess economic green development in the Yangtze River Delta region [
16]. (3) Scholars employ DEA methods to assess the economic, environmental, and social green development performance across provinces in China by evaluating the relative efficiency of decision-making units [
17,
18,
19]. Cheng et al. (2024) identify technological innovation as a key factor in enhancing green productivity [
20]. Researchers indicate that manufacturing enterprise digitalization, industrial structure optimization and adjustment, tax system greening, enhanced embedding in the Global Value Chain (GVC), environmental technology standards, and financial development can significantly promote industrial green transformation [
21,
22,
23,
24]. However, existing financial regulatory policies may impede the transition to net-zero carbon emissions, which is detrimental for green transformation (Gasparini et al., 2024) [
25].
Thirdly, researchers examine the effects of digital intelligence on green development. Digital transformation has achieved information sharing, knowledge accumulation, and resource orchestration (Xu et al., 2024) [
26]. Ensuring the smooth development of innovation activities addresses the operational cost dilemmas and technological breakthrough challenges encountered by manufacturing or heavily polluting enterprises during green transformation (Dong et al., 2024) [
27]. Digital transformation has the potential to decrease energy intensity and facilitate green transformation (El-Kassar and Singh, 2019) [
28]. Artificial intelligence technologies provide technical support for enterprises’ automatic decision-making, production, feedback, and supervision. They not only replace human labor (Cioffi et al., 2020) [
29] but also facilitate human–machine collaboration (Kromann et al., 2020) [
30], thus advancing industrial green transformation. However, some scholars argue that the relationship between digital intelligence and green growth is not inherently linear. Studies focusing on China and countries along the Belt and Road Initiative (BRI) suggest that artificial intelligence can either facilitate green growth or demonstrate a U-shaped relationship (Yang et al., 2025; Feng et al., 2024; Zhao et al., 2022) [
31,
32,
33]. In resource-dependent cities, the adverse effects of technological change on GTFP were more pronounced (Li and Ouyang, 2020) [
34]. Currently, researchers lack consensus on the relationship between digital intelligence and regional green development.
Existing research has explored various aspects of digital intelligence measurement and its economic effects, the drivers of green development, and the impact of digital intelligence on industrial green development. Nonetheless, some gaps remain. On the one hand, current research primarily assesses the digitalization and intelligence development levels in micro-enterprises, with limited studies integrating both aspects. Furthermore, there is a scarcity of direct measurements of regional-level digital intelligence utilizing big data and machine learning methodologies. On the other hand, studies on green development drivers primarily focus on the influence of technological or environmental factors, with limited research addressing the role of digital intelligence.
This manuscript makes four contributions to the literature. Firstly, we employ big data and machine learning methods to crawl the Baidu Index for the frequency of terms related to digitalization and artificial intelligence across prefecture-level and above cities during 2011–2022, thus constructing regional-level digital intelligence indicators. Secondly, this article utilizes panel data from 277 prefecture-level and above cities in China from 2011 to 2022, employing a two-way fixed effects model to examine the green effects of digital intelligence. Instrumental variable methods are effectively employed to mitigate potential endogeneity issues. Thirdly, this study develops a theoretical framework to analyze the impact of digital intelligence on regional green development, arguing that digital intelligence can enhance urban green productivity by advancing the industrial structure and strengthening environmental protection. This study empirically examines these mechanisms. Fourthly, this manuscript explores the heterogeneous effects of digital intelligence on urban green productivity from aspects of spatial dimensions, city scale, resource endowment, and urban green productivity levels.
The remainder of this article is organized as follows: The second section presents theoretical analysis and research hypotheses; the third section describes the model specification and data; the fourth section presents the baseline results and robustness tests; the fifth section provides the mechanism tests; the sixth section presents heterogeneity analysis; and the seventh section concludes with policy recommendations.
2. Theoretical Analysis and Research Hypotheses
Digital intelligence is increasingly essential for regional green development. Digital intelligence affects regional green development through the following three aspects.
Digital intelligence has established a novel ecosystem for green technological innovation. The extensive integration of digital technology has transformed conventional innovation models, with artificial intelligence algorithms markedly improving innovation efficiency through the optimization of the research and development (R&D) pathway selection (Li et al., 2024) [
35]. Blockchain technology has established more transparent and secure protection mechanisms for innovative outcomes, effectively addressing intellectual property challenges in green technology R&D. More importantly, digital platforms have broken the spatiotemporal limitations of innovation element flows, facilitating the establishment of cross-regional and cross-domain collaborative innovation networks (Gu et al., 2023) [
36]. This systematic transformation is reflected in the quantitative change of innovation efficiency and has also triggered qualitative changes in innovation models. Industrial Internet platforms facilitate accurate alignment of R&D resources, whereas digital twin technology offers virtual simulation environments for innovation processes. This innovative ecosystem reconstruction, driven by digital intelligence, provides continuous technological momentum and innovation sources for regional green development. Thus, this manuscript proposes the first hypothesis.
Hypothesis 1. Digital intelligence can promote regional green development by fostering green technological innovation.
Digital intelligence is triggering deep-level transformations in industrial organizational forms. The widespread application of intelligent manufacturing technology has not only improved production efficiency but, more importantly, has reconstructed various links in the industrial value chain (Liu et al., 2024) [
37]. The digital platform economy has given rise to flexible, networked new industrial organization models, achieving intelligent matching of production factors and dynamic optimization of value networks (Zander et al., 2025) [
38]. This transformation is manifested at the micro level as the digital transformation of enterprise production functions and at the macro level as the formation of a more resilient modern industrial system. The industrial-level application of digital twin technology has achieved complete life-cycle value management, while the deep penetration of artificial intelligence has reshaped the basic logic of industrial competition. In particular, the industrial transformation driven by digital intelligence exhibits clear green characteristics, with the rapid development of new models such as clean production and the circular economy. This industrial evolution path not only enhances economic efficiency but, more importantly, lays a solid industrial foundation for green development. Thus, this study proposes a second hypothesis.
Hypothesis 2. Digital intelligence can promote regional green development by advancing industrial structure.
Digital intelligence applications are driving the modernization transformation of environmental governance systems. The systematic implementation of Internet of Things technology has established a comprehensive, three-dimensional environmental monitoring network, facilitating precise regulation of pollution emissions (Li et al., 2024) [
39]. The extensive application of big data analysis has improved the scientific basis of environmental decision-making and has established mechanisms for policy optimization grounded in historical data. This innovation in governance, driven by data, surpasses conventional command-and-control frameworks, establishing a holistic governance closed loop that encompasses monitoring and early warning, analysis and decision-making, as well as execution and feedback. The use of digital twin technology in environmental applications facilitates the virtual simulation of governance processes, and intelligent algorithms have markedly improved the accuracy of regulatory measures. Edge computing technology has facilitated the real-time processing of environmental data, and blockchain technology has offered technical support for the development of environmental credit systems (Durden, 2025) [
40]. The modernization of governance systems has successfully achieved environmental governance and green protection, while also establishing institutional infrastructure that aligns with the needs of green development. Therefore, this article proposes a third hypothesis.
Hypothesis 3. Digital intelligence can promote regional green development through environmental protection effects.
5. Mechanism Analysis
The theoretical framework of this paper demonstrates that digital intelligence primarily influences regional green development through promoting green technological innovation, advancing industrial structure, and enhancing environmental protection. Thus, this article identifies green technological innovation, industrial structure advancement, and environmental pollution levels as mechanism variables through which digital intelligence influences regional green development. Green technological innovation is indicated by the total number of green patent applications (
GPA) and the total number of green patent grants (
GPL) (Wang et al., 2022) [
48]. Industrial structure advancement (
AIS) is measured by the ratio of tertiary to secondary industry output value (Gan et al., 2011) [
49]. Environmental pollution levels are measured by wastewater emissions (
WE), SO
2 emissions (
SODE), and smoke and dust emissions (
SDE).
Green technological innovation, industrial structure advancement, and environmental pollution levels have direct effects on regional green development. Green technological innovation and industrial structure advancements facilitate regional green development, whereas environmental pollution obstructs this process. This study employs the method of Shang et al. (2024) [
52] to substitute the outcome variable and examine the impact mechanism of digital intelligence on regional green development. Specifically, we substitute the outcome variable in the baseline regression model with green technological innovation, industrial structure advancement, and environmental pollution levels, respectively.
Table 5 presents the results of the mechanism tests.
Columns 1–2 of
Table 5 indicate that the estimated results of digital intelligence are significantly positive at the 1% level, suggesting that digital intelligence contributes to an increase in both the total number of green patent applications and green patent grants. Green technological innovation typically facilitates regional green development. Digital intelligence can promote regional green development through the enhancement of green technological innovation. Consequently, Hypothesis 1 is validated, aligning with the findings of Guo and Xu (2024) [
53]. Column 3 of
Table 5 indicates that the estimated result of digital intelligence is significantly positive at the 5% significance level, suggesting that the enhancement of digital intelligence facilitates the advancement of industrial structure. Industrial advancement contributes positively to enhancing regional green development levels. The findings corroborate Hypothesis 2. Columns 4–6 of
Table 5 indicate that the estimated results of digital intelligence are all significantly negative at the 1% level, suggesting that the enhancement of digital intelligence effectively contributes to the reduction of wastewater emissions, SO
2 emissions, and smoke and dust emissions. Reduced environmental pollution levels facilitate the advancement of regional green development. Consequently, the results support Hypothesis 3, which aligns with the findings of Ren et al. (2023) [
54] and Yue and Han (2025) [
55].
The three mechanisms collectively establish a collaborative action chain comprising green technological innovation, industrial upgrading, and environmental improvement. Green technological innovation serves as the foundational driving force, industrial advancement acts as structural support, and pollution reduction functions as the environmental guarantee. These findings provide precise mechanisms for regional digital intelligence development policies.
7. Conclusions and Policy Implications
In the digital era, the advancement of digital intelligence is essential for attaining a competitive advantage. It acts as a fundamental catalyst for optimizing regional economic structures and fostering green development. Using data from 277 prefecture-level and above cities in China from 2011 to 2022, this article examines the effects and mechanisms of digital intelligence on regional green development.
The digital intelligence is conducive to promoting regional green development, supported by a series of robust tests. This positive impact of digital intelligence on regional green development showed a steady upward trend from 2011 to 2022 and varies considerably across spatial dimensions, urban sizes, and resource endowments. In eastern regions, large cities, and non-resource-dependent cities, digital intelligence facilitates the advancement of regional green development. For central and western regions, as well as medium-sized cities, digital intelligence has no significant impact on regional green development. Conversely, in small cities and resource-dependent cities, the enhancement of digital intelligence reduces regional green development levels. With the increase in green development levels, the impact of digital intelligence on regional green development demonstrates obvious monotonic increasing characteristics. The mechanism test results demonstrate that digital intelligence improves regional green development levels by facilitating green technological innovation, advancing industrial structure, and enhancing environmental protection effects. Therefore, Hypotheses 1–3 proposed in the second section have been empirically validated, and the findings align with the conclusions of relevant literature (Guo and Xu, 2024; Ren et al., 2023; Yue and Han, 2025) [
53,
54,
55].
Based on the empirical analysis conclusions above, this study provides the following policy implications:
Firstly, governments should implement differentiated digital intelligence promotion strategies. These strategies must align with regional development characteristics. Developed eastern regions and large cities should leverage existing digital infrastructure and agglomerate innovation resources. They should prioritize establishing R&D platforms for advanced technologies, including 5G, artificial intelligence, and blockchain. For central and western regions and medium-sized cities, the policy focus should be on enhancing digital infrastructure. It should also advance industrial digital transformation. For small, resource-dependent cities, governments should implement a comprehensive risk prevention mechanism. A negative list management system is also crucial. The promotion of digital intelligence projects that could lead to industrial disruption requires careful regulation. The government should support a ‘lightweight digital intelligence’ transformation tailored to local characteristics.
Secondly, governments should strengthen incentive mechanisms for green technological innovation. This will leverage the positive environmental externalities of digital intelligence. Establishing collaborative innovation special projects on “Digital Intelligence + Green Technology” is recommended. These projects should support integrated innovations. Examples include pollution reduction technologies utilizing the industrial internet and pollution footprint monitoring technologies leveraging big data. To foster innovation, collaborative innovation consortia should be established. These consortia should involve government, industry, academia, research, and finance. Improve the green technology transaction market system. Utilize blockchain technology to establish trusted platforms for emission rights and green patent trading. This will enhance technology transformation efficiency. Simultaneously, enhance the green technology standard system. Develop quantitative evaluation methods for the green environmental protection effects of digital intelligence technologies.
Thirdly, governments should construct a collaborative governance system for digital intelligence development. This system must ensure a balance between economic and ecological benefits. An evaluation system is essential. It should encompass dimensions such as digital economy vitality, industrial structure optimization, and ecological environment improvements. Enhance the complete life-cycle management of digital intelligence projects. Incorporate sustainability indicators into project evaluation standards. These include industrial structure advancements and environmental protection effects. In terms of policy coordination, strengthen policy measures in fields such as the digital economy, industrial policy, and ecological environmental protection. Establish dynamic evaluation and adjustment mechanisms for policy effects. Regularly conduct environmental impact assessments and socio-economic benefit assessments of digital intelligence development. Ensure coordination between digital intelligence development and regional green development.