How Does the Development of the Internet Affect Green Total Factor Productivity? Evidence From China

Green total factor productivity is not merely an inevitable choice to continuously increase the quality of China's economy, but also a booming demand to promote global development. With the fast development of the new generation information technology represented by world comprehensive web technology, Internet growth may well play a more crucial role in enhancing green total factor productivity in China. Based on 2009-2017 China's inter-provincial panel data, this article uses the threshold regression model and fixed-effect model to empirically investigate the influence intensity and internal mechanism of green total factor productivity in areas affected by the Internet development. We ultimately come to the following conclusions. First, there is a digital divide between the regions of China. Second, many factors such as Internet development, human capital, urbanization, energy efficiency, and external dependence all exert a positive influence on China's green total factor productivity. At the same time, government intervention is not conducive to green total factor productivity. Third, the influence of Internet growth on China's green total factor productivity is non-linear, based on the significant double threshold effect of human capital. As the level of human capital continues to exceed the threshold value, the effect of Internet expansion on the green total factor productivity of China has undergone a structural change. The result has changed from a weak negative influence to a positive one, and the significance is increasing. To advance the smart, green, and coordinated development among regions, it is necessary to bring “Internet +” into full play in promoting China's green total factor productivity, strengthen the deep integration of Internet development and industrial development, and improve the level of clean production utilizing network information.