Supply Chain Digitization Boosts Urban Carbon Productivity in China

Strategic Insights -

A recent study conducted by researchers at Shandong University has found that supply chain digitalization (SCD) can significantly enhance urban carbon productivity (CP) in China. The study, which analyzed panel data from 282 Chinese prefecture-level cities from 2010 to 2021, found that SCD promotes green technological innovation and increases green total factor productivity, thereby improving CP. The researchers also identified key moderators of this positive effect, including low-carbon pilot cities, new-energy demonstration cities, logistics development levels, and internet penetration rates.

Key Takeaways:

  • The study found that supply chain digitalization (SCD) significantly enhances urban carbon productivity (CP) in China, with a 10.3% average annual increase in CP over the 2010-2021 period.
  • Mediation analysis revealed that SCD promotes green technological innovation and increases green total factor productivity, thereby improving CP.
  • Moderation analysis identified key factors that strengthen the positive effect of SCD on CP, including low-carbon pilot cities, new-energy demonstration cities, logistics development levels, and internet penetration rates.
  • The effect of SCD on CP was more pronounced in southern regions, coastal cities, transportation hubs, non-resource-based cities, and cities with environmental protection priorities.
  • The study found that the effect of SCD on CP was more significant in cities with higher levels of green technological innovation and green total factor productivity.
  • The researchers suggest that their findings provide empirical evidence and policy guidance for integrating digitalization with low-carbon development in different contexts.

Statistics:

  • 282 Chinese prefecture-level cities were analyzed in the study.
  • The study used panel data from 2010 to 2021.
  • The average annual increase in urban carbon productivity (CP) was 10.3% over the 2010-2021 period.
  • 10 moderated variables were identified, including low-carbon pilot cities, new-energy demonstration cities, logistics development levels, and internet penetration rates.

Sources:

  • Can Supply Chain Digitization Boost Urban Carbon Productivity? Evidence From a Quasi-natural Experiment In China. Journal of Cleaner Production, 2025;525.
  • National Natural Science Foundation of China (NSFC)
  • Natural Science Foundation of Shandong Province
  • Fund Projects for Hu-manities and Social Sciences Research of the Ministry of Education
  • China Weekly News. October 21, 2025; p 272.