How to improve environment, resources and economic efficiency in the digital era?

Deepening of the New Development Concepts and the strategy of building a “digital power” have necessitated improving the digital economy for improving environmental efficiency (EE) and resource sustainability in China. Using the panel data from 2011 to 2018, this study measures the digital economy level (DIGE) using the entropy weight method and quantifies EE using the SBM-DEA model. Then, based on four different spatial models and the mediation model, this study empirically investigates the spatial effect of DIGE on EE, and the potential impact mechanism. The primary study findings are as follows: (i) EE demonstrated a stable but slow increase and clear spatial agglomeration with spatial differentiation characteristics in regions. (ii) DIGE could significantly promote EE, and there was a noticeable “spatial synergistic effect,” which was manifested as a spatial spillover effect of “1 + 1>2.” (iii) The mediating effect of TFP growth rate showed that technological progress could synergize with DIGE to promote the enhancement of EE. (iv) According to the geographically and temporally weighted regression (GTWR) model, spatial heterogeneity from the east to the west showed a “band-like increase” characteristic. Finally, we present corresponding policy implications.