The Impact of E-Commerce on Urban Green Innovation Development: Evidence From Chinese Cities

Introduction

There are prominent alterations in the way people live and consume along with the growth of information and communication technology. E-commerce, as a commercial transaction activity on the open network, is a major driving force behind these changes (Mitchell, 2001). By changing the traditional business model, e-commerce has accelerated the flow of information and knowledge sharing and helped enterprises establish new connections and create new values. This has led to the intelligent upgrading of enterprise products, enhanced environmental responsibility, and accelerated the process of green product innovation, thereby advancing green innovation (Cho et al., 2021; Liang et al., 2004; McCarthy, 1999). Moreover, e-commerce has become integrated into various fields of the economy, leading to the development of new business models and becoming an engine to promote the green economy. This has given rise to a series of new models that help boost the development of the green economy (Zhu et al., 2021).

Green innovation is essential for promoting high-quality economic growth, as well as achieving the objective of “carbon neutrality and carbon peaking,” which contribute to long-term sustainable economic development (Du & Li, 2019). On the one hand, as society moves toward “carbon neutrality and carbon peaking,” it must cut back on the use of fossil fuels, instead using more green energy sources such as solar energy and water. Green technology occupies an important position in developing and using clean energy. Green technology innovation directly impacts the use of clean energy, which affects carbon emissions and is related to achieving “carbon neutrality and carbon peaking.” On the other hand, the aim of “carbon neutrality and carbon peaking” raises the bar for environmental responsibility and carbon emissions of enterprises, leading to higher expectations for the green and environmental protection level of their products. The enterprise's green innovation ability will determine the greenness of their products and their environmental impact (Wang et al., 2021). Therefore, enhancing the green innovation level is also the key to enhancing the greening and environmental protection of enterprise products.

In the current context of e-commerce integration with traditional industries, it is crucial to leverage e-commerce's empowering effect on green innovation in cities. E-commerce facilitates enterprises' access to local market information, reducing information asymmetry in traditional transactions and lowering external and internal transaction costs. This integration accelerates enterprises' green innovation activities, driving green and high-quality urban development. To promote urban e-commerce development, the Chinese government established the first e-commerce demonstration city in Shenzhen in 2009, and then selected 53 other cities in 2011, 2014, and 2017. These cities established e-commerce demonstration bases to popularize and apply e-commerce to impact green innovation in cities. Examining the influence of e-commerce development on urban green innovation is critical, including its mechanism of action and how this impact may differ depending on cities' conditions, such as resource endowment and location distribution. Addressing these questions will clarify the effect of e-commerce development on green innovation, providing new ideas and pathways to accomplish “carbon neutrality and carbon peaking,” which has both theoretical and practical significance.