Governing Water Sustainably in the Digital Era: How Digital Infrastructure Enhances the Green Efficiency of Water Use in China

Enhancing the green efficiency of water use (GEWU) is essential for the sustainable management and conservation of urban water resources, with digital infrastructure providing key technical support for sustainable utilization. This study develops a theoretical model to investigate the impact of digital infrastructure on green water-use efficiency (GEWU) and its underlying mechanisms. A multi-period difference-in-differences (DID) model is employed to verify the relationship by using prefecture-level panel data from China spanning 2010 to 2023. Our findings indicate that advancements in digital infrastructure have led to a significant 1.07% improvement in GEWU. This positive effect is predominantly driven through enhancement of urban innovation capacity, industrial structure and pollution control. The results of heterogeneity analysis show that digital infrastructure has a more significant impact on GEWU in megacities, the eastern region, and the Huai River and Hai River basins. These findings highlight the potential of integrating advancements in the digital economy with water management strategies, providing a promising avenue for promoting sustainable water use and conservation at both local and global levels.