Digital governance and urban air quality: Global evidence of environmental co-benefits

Abstract

This study examines how improvements in digital governance influence urban air quality in global cities. The analysis uses annual PM2.5 and monthly NO2 observations from 280 cities across 120 countries, combined with national e-government indicators, covering the years 2005 to 2023. The study applies various analytical models, including fixed effects models, staggered difference-in-differences, event-study designs, common correlated effects, spatial Durbin models, system-GMM, and panel quantile regression, to capture causal, dynamic, and spatial effects. The results indicate that higher digital government maturity reduces NO2 emissions by approximately 4-5 percent and PM2.5 levels by about 3 percent. The analysis shows that these reductions occur more rapidly following the implementation of e-service initiatives. Event-study estimates confirm the absence of pre-existing trends and demonstrate persistent decreases after the launch of digital services. Spatial models suggest that reforms generate indirect benefits for neighboring cities, and quantile analysis reveals more significant improvements in highly polluted, densely populated areas. The effects are more pronounced in non-OECD countries and cities with higher internet penetration, highlighting the importance of institutional readiness and digital infrastructure for effective environmental outcomes. These findings demonstrate that digital governance reduces administrative mobility, enhances compliance, and improves monitoring, thereby producing measurable environmental benefits. Policymakers can utilize these results to incorporate e-government reforms into national environmental strategies, prioritize urban areas with high pollution levels, and support digital capacity building to maximize environmental gains.