1 February 2026 4:53 am
Satellite Data Can Enable Solutions for Smart Cities

Satellite Data Can Enable Solutions for Smart Cities

Aug 8, 2025

How Satellite Data Can Enable Solutions for Smart Cities

By Petro Kogut

In Satellitetoday

The evolution of urban life hinges on a blend of sustainability and forward-thinking design. This is what makes the concept of smart cities so captivating — places where innovation meets resilience, creating environments that are not only efficient but also deeply connected to the needs of their inhabitants. Yet, achieving this vision requires more than technological advancements. It calls for a reimagining of urban systems, fostering a new perspective on how cities can adapt, thrive, and coexist with the natural world.

Satellite data can be a key enabler of this shift, providing a unique vantage point to optimize resource management, prioritize environmental stewardship, and take urban planning to another level.

Urban development requires not just conventional planning tools but far-reaching ones. Indeed, the ability to view satellite images in real-time has become a transformative influence — one where city planners are able to foresee challenges before they ever arise. Ranging from heat island detection to flood risk assessment, the technology brings in a dynamic understanding of urban ecosystems and encourages proactive planning versus reaction. The key areas where satellite images support smart cities include:

Urban Planning and Development: Crafting thoughtfully structured cities relies heavily on the insights offered by satellite technology. These tools provide a comprehensive view of urban landscapes, enabling planners to analyze land use, track urban expansion, and pinpoint opportunities for sustainable development. By capturing the dynamics of city growth via historical and recent satellite images, space-retrieved data empowers decision-makers to balance development with resource conservation. Urban strategies can be fine-tuned to adapt to changing environments, fostering intelligent growth that aligns with both human needs and environmental sustainability.

Traffic and Transportation Management: Congestion and inefficient transportation are major challenges for modern cities. Satellite imagery supports traffic flow analysis and helps develop optimized routes for public transport systems. It also aids in identifying bottlenecks and ensuring smoother commutes. With a real-time satellite view, city planners can monitor traffic patterns dynamically and implement timely interventions.

Environmental Monitoring and Sustainability: Smart cities are sustainable cities, and satellite data is crucial for monitoring environmental health. From tracking air and water quality to detecting illegal dumping and deforestation, satellite images empower cities to act quickly and decisively to protect their natural resources.

Disaster Management and Response: Natural disasters need quick action. Therefore, satellite imaging for real-time updates on damage assessment, mapping of affected areas, and emergency response planning is an asset. These tools are critical in reducing response times and improving the effectiveness of disaster relief efforts. Accessing up-to-date satellite images ensures accurate assessments during emergencies.

Infrastructure Maintenance: Aging infrastructure presents a significant challenge for cities, as it can lead to costly and potentially hazardous failures if not addressed proactively. Satellite images provide a vital solution by enabling remote, real-time monitoring of critical assets such as roads, bridges, pipelines, and even public utilities. They allow for early detection of issues like cracks, structural weakening, or other signs of wear and tear. By identifying these problems at an early stage, city planners can prioritize maintenance activities, allocate resources more effectively, and avoid disruptions caused by unexpected breakdowns.

Energy and Resource Management: Satellites can help pinpoint the perfect locations for solar farms and wind turbines, using real-time data to maximize efficiency and output. But their value goes deeper: they enable smarter energy distribution, ensuring power reaches where it’s needed without unnecessary waste.

Challenges to Adoption

While satellite data provides key insights into monitoring air quality and urban sprawl to assessing green spaces and infrastructure development, there are a number of challenges to fully integrating satellite data into smart city planning.

One major roadblock is the lack of awareness among the urban planners and policymakers in terms of the actionable possibility that data from EO gives. Satellite view of the Earth and its analysis often remains the underutilized resource due to lack of understanding with respect to applications beyond basic mapping or simple environmental monitoring. To bridge this gap, it is required that the providers of EO not only supply the data but also cooperate closely with the city authorities through tailored solutions, training programs, and user-friendly tools that transform complex satellite data into actionable strategies for urban design and sustainability.

Another challenge is interoperability. Cities rely on a range of datasets, technologies, and systems, many of which are siloed or incompatible with EO platforms. EO providers will have to surmount these technical barriers by ensuring their data feeds seamlessly into existing urban planning frameworks, creating cohesive systems where satellite insights enhance decision-making without needing an overhaul of current infrastructure.

Cost, however, remains a major barrier for most municipalities, especially in developing areas. While EO data is very promising in resource allocation and infrastructure planning, the upfront investment may be a deterrent to city planners on tight budgets. To overcome this, innovative pricing models, subsidies, or partnerships between the providers of EO, governments, and private entities could make the solutions more accessible and scalable.

Finally, to move beyond surface-level implementation, the EO providers should proactively start smart city pilot projects in which, by proving through real-life case studies how satellite data can provide concrete solutions to urban challenges — traffic congestion, energy efficiency, and climate resilience, to name but a few areas — it will gain confidence, demonstrating an added value worth continued investment in.

EO providers can play a central role in smart city evolution only when the focus shifts from the supply of raw data to integrated, accessible, and collaborative solutions that match the goals and constraints of urban development. Only then can smart cities fully leverage the power of satellite technology to become truly sustainable, efficient, and resilient.

 

Petro Kogut is a scientist at EOS Data Analytics. He has a PhD in Physics and Mathematics and is the author of multiple scientific publications. He has a specific focus on a satellite imagery processing and application in his academic research. Currently, Prof. Dr. Petro Kogut also works a science advisor.

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How AI is building the future of our cities

How AI is building the future of our cities

Aug 2, 2025

Shah Muhammad, Sweco: How AI is building the future of our cities

AINEWS July 31, 2025

 

Shah Muhammad, who leads AI Innovation at the design and engineering firm Sweco, offers his insights into how AI is building the cities of the future.

Ever been stuck in traffic and thought, “Surely, there’s a better way to design this city?” Or walked past a giant new building and wondered if it would be an energy-guzzling monster?

For decades, building our towns and cities has been a slow, complicated process, often relying on educated guesswork. But what if we could give city planners superpowers? What if they could test-drive a dozen different futures before a single shovel hits the ground?

That’s exactly what’s starting to happen. And the secret ingredient is AI.

Headshot of Shah Muhammad, who leads AI Innovation at the design and engineering firm Sweco, and has given his insights on how AI is building the future of our cities.“AI is revolutionising urban design and infrastructure planning at Sweco by optimising processes, enhancing decision-making, and improving sustainability outcomes,” Shah explains. “It allows us to analyse vast amounts of data, simulate various scenarios, and create more efficient and resilient urban environments.”

Shah is saying that AI gives his team the ability to ask the big questions that will impact people’s lives when designing the cities of the future: “What’s the smartest way to build this neighbourhood to cut down on traffic jams and pollution? How can we design a building that stays cool in a heatwave without huge electricity bills?” The AI can run the numbers on thousands of possibilities to find the best path forward.

Of course, the real world is messy. It’s not a neat and tidy computer simulation. It’s full of unpredictable weather, unexpected delays, and the beautiful chaos of human life. This is the number one headache.

“The biggest challenge in applying data-driven models to physical environments is the complexity and variability of real-world conditions,” Shah says. “Ensuring that models accurately represent these conditions and can adapt to changing conditions is crucial.”

So, how do they deal with that? They start with the basics. They get their house in order. Before they even think about AI, they make sure the information it learns from is rock-solid and trustworthy.

“To ensure data quality and interoperability across projects, we implement rigorous data governance practices, standardise data formats, and use interoperable software tools,” he says.

That might sound a bit technical, but think of it this way: they’re making sure everyone on the team is singing from the same hymn sheet. When all the different software tools can talk to each other and everyone trusts the information, the AI can do its job properly. It “enables seamless data exchange and collaboration among different teams and stakeholders.”

But of all the things AI can do, this next part might be the most hopeful when using it to design future cities. It shows that this technology can have a real heart.

“There are many projects where AI has made a measurable impact on sustainability, making it hard to single out one,” he reflects. “However, if I were to choose, I would highlight a project where AI was used to preserve biodiversity by identifying endangered species and providing this information to researchers.”

In this scenario, technology is giving nature a voice in the planning meeting. It’s like the AI raising its hand and saying, “Hang on, let’s be careful here, there’s a family of rare birds living in this area.” It allows us to build with respect for the world around us.

So, what’s the next chapter? According to Shah, it’s about turning that crystal ball into a real-time guide.

“According to me, the biggest opportunity for AI in the AEC sector lies in predictive analytics and automation,” Shah explains. “By anticipating future trends, identifying potential issues early, and automating routine tasks, AI can greatly enhance efficiency, reduce costs, and improve the overall quality of projects.”

This could mean safer bridges, roads that need fewer repairs, and less disruption to our lives. It means freeing up talented people from the boring tasks to focus on building the cities of the future that are more in tune with the people who call them home.

Shah Muhammad is speaking at AI & Big Data Expo Europe in Amsterdam on 24-25 September 2025 where he will be hosting a presentation on ‘Leveraging Generative and Agentic AI for Intelligent Process Automation’. Find out more about the event and how to attend here.

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About the Author

, Senior Editor

Ryan Daws is a senior editor at TechForge Media with over a decade of experience in crafting compelling narratives and making complex topics accessible. His articles and interviews with industry leaders have earned him recognition as a key influencer by organisations like Onalytica.
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Residential construction possible more environmentally friendly

Residential construction possible more environmentally friendly

Aug 1, 2025

 

Study shows it is fully possible to make residential construction more environmentally friendly

by Anne-Lise Aakervik, Norwegian University of Science and Technology

edited by Lisa Lock, reviewed by Andrew Zinin

 Techxplore
The research group has investigated emissions from housing construction in West Asia and North Africa. The photo shows modern construction Baku, Azerbaijan. Credit: Unsplash/CC0 Public Domain

Residential construction requires large amounts of energy and materials, but there is significant potential for savings.

Postdoctoral fellow Şahin Akın and his research colleagues at NTNU have taken a closer look at  in the housing sector in West Asia and North Africa towards 2050.

Their results, published in Sustainable Cities and Society, show that it is possible to reduce  in this area by up to 56% over the next 25 years.

“We investigated resource efficiency in nearly 1,000 different types of residential housing in 19 countries in West Asia and North Africa (WN) and looked at various possible scenarios for the next 25 years,” he said.

These are areas with large economic differences, where the effects of climate change are strongly felt. We are talking about major emissions.

Significant emissions reductions are possible

Residential construction accounts for 21% of the . Materials used for building homes account for 30% of the carbon footprint of the world’s total material production.

Akın focused specifically on the characteristics of three types of housing: detached houses, multi-family houses and high-rise/. The work also included informal housing, because the majority of the countries are quite poor, and informal settlements make up a significant part of the total housing stock. Although they do not use much energy, they do use materials.

Akın and the research team developed a dynamic stock model using data from these housing archetypes. The model then evaluated 10 , involving six individual strategies and four combinations.

Countries that have not been investigated before

“In our case, we focused on regions in North Africa and West Asia that had not been studied before, as most research on this topic generally takes place in Western countries,” explained Akın.

The countries studied were the Caucasus countries, including Azerbaijan, Georgia and Armenia, and also very resource-rich countries on the Arabian Peninsula, such as the United Arab Emirates, Kuwait, Bahrain and Oman. In addition, Egypt, Algeria, Morocco and Turkey were investigated, the latter of which is probably more Western in its approach and quite different in its strategy.

All of these are areas where the building methods have been adapted over generations to both the climate and the economy by using local materials and solutions that provide natural cooling and ventilation without the use of energy.

However, things are changing, especially in the Gulf countries due to their economic growth. This in turn influences building styles and lifestyles, entailing a significant rise in energy consumption through Western building styles, increased use of concrete, air conditioning and higher living standards.

Concrete is a major culprit, and the energy used for cooling increases emissions.

How can greenhouse gas emissions be reduced?

Akın has investigated various scenarios that could reduce energy use, material consumption and other related greenhouse gas emissions in these countries. The results from the model show that a combined strategy can reduce operational emissions by 60% and material-related emissions by 47%, resulting in a total greenhouse gas reduction of 56% by 2050.

“This is surprisingly good,” said Akın.

As a starting point, Akın established a “business-as-usual” scenario, where no measures are taken at all. The results for this scenario are quite discouraging; if we continue as before, emissions levels will increase. In these regions, a  is also expected by 2050, which alone will require more and larger houses.

“And assuming that people in the future want to live much more comfortably, those who can afford it will move from informal housing to formal residential buildings. This will also create enormous energy and material demands, and they will likely switch to electricity-powered air conditioning, as the old building traditions with natural ventilation and materials that keep houses cool are abandoned,” explained Akın.

Tested 10 different scenarios

In addition, Akın tested 10 resource efficiency scenarios, focusing on materials, energy, fuel and energy preferences. They also studied various combinations of the strategies.

Since the majority of the countries are located in a desert belt, it gets quite hot. When it came to cooling houses, they tested reflective white paint on all envisioned new buildings that would reflect the sun’s rays.

They also tested heat pumps and controlled lighting, as well as more environmentally friendly concrete.

One test involved reducing the number of square meters per person, as houses have grown in size in line with economic prosperity.

Each combination had varying effects on , material use and greenhouse gas emissions depending on the type and country, while the combined scenario showed the greatest reduction. A combination of all the measures provided the best effect for the entire region, with a potential emissions reduction of 56%.

Akın stresses that this is just an exercise conducted in a model based on housing types that are representative of the region in question.

“But once you have the knowledge, you can also make informed choices,” he added.

Involving the local population

Akın believes it will take time to implement the necessary measures, but emphasizes the importance of involving the  at all levels.

“I think local experts should develop solutions tailored to their specific building stock. I am of the opinion that they know their buildings better than we do, and they also know the local inhabitants. They are familiar with their habits, building traditions and lifestyles,” said Akın.

He also believes that AI will be a useful tool for such plans in the future. Regarding the actual results from the model, he is surprised to see the scale of the emissions reductions it is possible to achieve.

“I didn’t expect that, to be honest. Because the population is growing and there will be many new houses. In our scenarios, we stopped the construction of new informal houses and replaced them with detached houses or multi-family houses, and no renovation measures were included. So, between 2024 and 2050, we built houses according to the population increase. I expected a smaller emissions reduction, so a 56% reduction in land-based emissions is pretty good.”

More information: Sahin Akin et al, Future resource efficiency scenarios for the Western Asian and Northern African residential buildings: An exploratory study, Sustainable Cities and Society (2025). DOI: 10.1016/j.scs.2025.106351

Provided by Norwegian University of Science and Technology
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The imperative of regeneration for safeguarding a city’s urban health

The imperative of regeneration for safeguarding a city’s urban health

Jul 28, 2025

The imperative of regeneration for safeguarding a city’s urban health is because, as per Rammal, who is a partner at Roland Berger in its Dubai office, “Beyond their practical functions, districts also play a crucial role in fostering social connections, strengthening local networks and reinforcing a shared sense of identity and belonging among residents.”

 

Above image is for illustration courtesy of GLASSDOOR

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The imperative of regeneration for safeguarding a city’s urban health

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 28 July 2025 Consultancy-me
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In cities around the world, there is a strategic imperative to prioritize urban regeneration. To find out more about how areas in decline is affecting cities and what can be done to revitalize them, we spoke with Bilal Rammal from Roland Berger.

The health of a society is reflected in its urban spaces: where residents live, work, and play. These neighborhoods are where citizens engage in practical things like shopping, education, and entertainment – but they also serve a higher good as places of social connection.

“Beyond their practical functions, districts also play a crucial role in fostering social connections, strengthening local networks and reinforcing a shared sense of identity and belonging among residents,” says Rammal, who is a partner at Roland Berger in its Dubai office.

“When properly maintained, cities not only enhance social cohesion but also create a fertile environment for economic growth and community resilience.”

But when urban decay begins to impact a district, developments such as unemployment, crime and pollution can grow. Such urban decay negatively impacts the people living in cities, and on the longer run, contributes to an overall declining standard of living.

“Urban decay appears to be a universal phenomenon,” notes Rammal. “There are many interconnected factors that can cause decline –  and as with any complex issue, the solutions are also complex.”

The warning signs

Mostly, urban decline sets in gradually, meaning that planners and policymakers can forecast and mitigate issues through a system of monitoring and early warning signs. “Identifying early warning signs is a crucial basis for timely action to prevent further deterioration,” Rammal notes.

One of the first warning signs that is often seen in cases of urban blight are shifts in population size, wherein residents begin leaving an area lacking services and quality of life, or when urban sprawl brings large numbers of people to the surrounding areas of a city. “These population shifts can weaken local economies, diminish social cohesion and accelerate the deterioration of urban infrastructure.”

The imperative of regeneration for safeguarding a city’s urban health

Source: Roland Berger

One illustrative example of this is Santiago, the capital of Chile, one of the largest cities in the Americas. “Urban decline in the central neighborhoods of Santiago was foreshadowed by a significant residential shift that began in the late 1990s,” explains Rammal.

“During this period, the steady migration of residents from the city center to peripheral districts led to a dramatic population decrease in central areas, while the population of the Santiago Metropolitan Region continued to grow strongly – as it had since the 1950s. Over time, this movement resulted in a 50% decline in the number of inhabitants in the central areas, contributing to their gradual deterioration.”

Rammal points to similar shifts in population in various other cities, which saw rapid influxes of lower-income residents. That eventually brought down rental prices, and with that, a general decline in the districts.

Other contributing factors

Changes in demographics and the subsequent shifts in the real estate market have a strong impact on communities, but other factors also play a big role. For example, socio-economic shifts caused by deindustrialization can quickly lead to the kind of urban decay that tears apart the fabric of a community.

The imperative of regeneration for safeguarding a city’s urban health

Source: Roland Berger

Another example was seen in the city of Bilbao, Spain, hit hard by an economic crisis in the 1980s when key industrial business activities disappeared and the unemployment rate soared from a mere 2.5% to around 26%.

“The effects of this economic collapse rippled beyond the job market, influencing urban planning and reshaping the metropolitan landscape. Large industrial zones were left abandoned, and inefficient land use practices became widespread,” notes Rammal.

Transformative change

While it can be hard to pin down the exact causes of these various interconnected urban problems, there are a number of possible ways to approach finding a solution that works. Rammal cites two examples from the region.

The first is the Old Al Ghanim district in Doha, Qatar, one of the city’s oldest neighborhoods, which features traditional architecture. Over many years of rapid urban development, many of the original inhabitants left the area.

A revitalization effort was undertaken to preserve the cultural heritage of Old Al Ghanim: infrastructure was improved, redevelopment was coordinated by involving the community, and the urban environment was made more sustainable.

The imperative of regeneration for safeguarding a city’s urban health

Source: Roland Berger

In another case study, Riyadh, the Saudi capital, suffered from problems related to a remarkable increase in population over a relatively short period of time. Some central districts of the city saw big demographic shifts and declining property values.

“Local authorities have responded proactively to the challenges of urban decline by launching district regeneration programs aimed at revitalizing Riyadh’s historic and underutilized areas,” explains Rammal. “These interventions aim to reverse urban decline, stimulate economic activity and position Riyadh’s central districts as competitive, high-value urban destinations.”

The solution for Riyadh has been to focus on conserving architectural heritage, upgrading infrastructure and mobility, elevating the public realm by creating more green areas and walkable spaces, fomenting public-private partnerships, and addressing local resident and businesses with inclusive growth.

“Ensuring the health and vibrancy of districts and neighborhoods – the lifeblood of a nation’s social fabric – is crucial for enabling social cohesion and promoting economic growth,” says Rammal.

Regeneration planning

While numerous parties play a role in regeneration, governments should sit at the helm of district regeneration efforts, emphasizes Rammal. “They oversee the masterplan and ensure that urban regeneration initiatives focus on both economic and social improvements.”

They also act as the safeguard of cultural values, ensuring that development goes hand in hand with protecting cultural heritage, which is a great asset in its own right.

Meanwhile, governments should also oversee alignment with other areas that cross sect regeneration and risks. Rammal highlights gentrification and displacement as examples, advising policymakers to keep a close eye on policies that safeguard affordable housing options and protecting vulnerable populations.

“In conclusion, the key to combating urban decay is an understanding of its root causes and an ability to spot the early warning signs. Action should be based on a clear vision, a commitment to preserving cultural identity and – vitally – the inclusion of local stakeholders, supported by an environment that encourages participation by private players.”

 

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Power of the Digital Economy for Environmental Sustainability

Power of the Digital Economy for Environmental Sustainability

Jul 26, 2025

 

Unleashing the Power of the Digital Economy for Environmental Sustainability by Zheng, C., & Ma, S. (2025), whose study examines how the development of the digital economy enhances environmental sustainability in urban contexts, using panel data from 280 Chinese prefecture-level cities (2010–2023), and employs multiple econometric methods.

Above Image is for illustration – courtesy of the Digital Banker

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Unleashing the Power of the Digital Economy for Environmental Sustainability

https://doi.org/10.1016/j.frl.2025.108027

Highlights

  • Digital economy drives urban green transition via better resource efficiency.
  • Industrial upgrade and green innovation mediate digital eco-benefits.
  • Government eco-focus enhances the digital economy’s positive impacts.
  • Stronger effects in eastern cities require tailored regional policies.
  • Robust tests confirm digital economy’s causal role in sustainability.

Abstract

This study investigates how digital economy development enhances environmental sustainability in urban contexts using panel data from 280 Chinese prefecture-level cities (2010–2023) by employing multiple econometric methods. Results demonstrate that digital advancement significantly improves urban environmental efficiency through crucial mediating mechanisms: industrial structure enhancement and green innovation. Government environmental attention positively moderates this relationship, amplifying digital initiatives’ effectiveness. The impact exhibits pronounced heterogeneity across regional and urban hierarchies, with stronger effects in eastern regions and core cities. These findings offer insights into calibrating digital–environmental strategies to diverse development contexts rather than implementing uniform approaches.

Introduction

The unprecedented proliferation of digital technologies has catalyzed a fundamental transformation in urban developmental paradigms, particularly within the context of environmental sustainability (Bibri, 2018a, 2018b; Li et al., 2020; Liang et al., 2025; Xing et al., 2025; Xiong et al., 2024; Dai, 2025). As metropolitan regions increasingly grapple with the dual imperatives of economic advancement and ecological preservation, digital economy development (DIG) has become a pivotal force in reconciling these seemingly divergent objectives (Song et al., 2022; Wan and Shi, 2022; Bu et al., 2025). The intersection of digital innovation and urban sustainability presents a compelling research frontier, particularly in China’s rapidly evolving urban landscape.
The digital revolution, characterized by the pervasive integration of information and communication technologies, has engendered novel pathways for resource optimization and environmental stewardship (Aceto et al., 2019; Wang et al., 2023; Wu et al., 2025; Chen et al., 2025; Liu et al., 2025; Hunjra et al., 2024). These technological advances manifest through various channels, including smart grid systems, intelligent transportation networks, and digitalized environmental monitoring platforms (Feng et al., 2024; Huang et al., 2024; Chen et al., 2024; Dai et al., 2025). However, the mechanisms through which digital economic development influences urban green transformation (GREEN) remain inadequately explored, particularly within the context of China, where urbanization patterns exhibit unique characteristics (Zhu, 2024).
Contemporary scholarship has predominantly focused on isolated aspects of the digital economy’s environmental impact, often overlooking the complex interplay between technological innovation, institutional frameworks, and ecological outcomes. This fragmented approach has resulted in a significant knowledge gap regarding the holistic relationship between digital economic development and urban sustainability. Furthermore, existing literature has insufficiently addressed the influence of industrial structure advancement and green innovation as potential mediating factors in this relationship.
This study addresses these theoretical and empirical gaps through a comprehensive investigation of 280 Chinese prefecture-level cities from 2010 to 2023. Specifically, our research objectives are threefold: (1) to examine the causal relationship between DIG and GREEN, using green total factor productivity as a quantitative metric; (2) to delineate the mediating mechanisms through which industrial structure upgrading and green innovation facilitate this transformation; (3) to analyze the moderating effect of government environmental attention on the effectiveness of digital initiatives in promoting sustainable urban development.
The significance of this research extends beyond academic discourse. As policymakers increasingly recognize the strategic importance of digital transformation for achieving sustainable development goals, our findings offer crucial insights for evidence-based policy development. The results demonstrate that DIG not only catalyzes environmental efficiency but also stimulates technological innovation and industrial upgrading in a virtuous cycle of sustainable urban growth.
This study makes several distinct contributions to the existing literature. First, it provides empirical evidence of the causal relationship between DIG and GREEN, using a comprehensive dataset spanning multiple years and cities. Second, the results illuminate the specific pathways through which digital innovations influence environmental outcomes, offering a deeper understanding of the transformation process. Finally, the study examines the critical role of governmental environmental attention in moderating these relationships, providing valuable insights for policy optimization.

Section snippets

Theoretical review and hypotheses development

The DIG–GREEN nexus is a complex theoretical domain that necessitates the integration of multiple theoretical paradigms. Environmental economics theory provides a foundational framework for understanding how technological advancement can reconcile economic development with environmental preservation. This theoretical perspective indicates that digital technologies can fundamentally alter the environmental Kuznets curve (EKC), enabling cities to increase economic development while simultaneously

Data and sample

This study employs panel data from 280 prefecture-level cities in China spanning from 2010 to 2023. This temporal scope corresponds to a period of significant digital transformation in China’s urban development, and the spatial coverage encompasses diverse regional economic contexts. The primary data sources include the China City Statistical Yearbook, the China Statistical Yearbook, the China Energy Statistical Yearbook, and the China Environmental Statistical Yearbook. The digital financial

Descriptive statistics and multicollinearity analysis

As shown in Table 1, our analysis encompasses 3,920 city–year observations. GREEN efficiency (GREEN_sbm) averages 0.348 (SD = 0.141), with values ranging from 0.159 to 1.025, indicating marked disparities in environmental performance across cities. The results also reveal that DIG has a mean value of 0.342 (SD = 0.116), with a distribution spanning from 0.080 to 0.720, illustrating the heterogeneous nature of DIG across urban regions. Notably, INDUS has a mean of 1.056 (SD = 0.567), indicating

Conclusion

This investigation examines the complex interplay between DIG and GREEN across 280 Chinese prefecture-level cities spanning 2010–2023. Our empirical analysis introduces several substantial contributions to theoretical understanding and policy formulation in this emerging domain.
The baseline empirical findings demonstrate that DIG is a significant catalyst for GREEN. This relationship maintains robustness across diverse model specifications, alternative variable measurements, and multiple

Author statement

Chuang Zheng conceptualised the research and contributed to data analysis.
Sa Ma supervised the study, developed the methodology, and revised the manuscript.
Zheng, C., & Ma, S. (2025). Unleashing the Power of the Digital Economy for Environmental Sustainability. Finance Research Letters, 108027. https://doi.org/10.1016/j.frl.2025.108027