A team of Vietnamese researchers led by Thi Thao Pham and Khanh Cuong Le assembled a balanced panel covering all 63 Vietnamese provinces and centrally administered municipalities from 2010 to 2023, yielding 882 province-year observations. Their central instrument is a newly constructed Multidimensional Digital Transformation Indicator, or DTI, built from five dimensions: digital infrastructure such as fixed broadband subscriptions, digital adoption measured by active internet use, digital innovation captured through ICT-registered enterprises and e-commerce activity, digital governance based on provincial e-government readiness scores, and digital industry development reflecting the digital economy’s share of provincial GDP. The authors subjected the composite to an unusually thorough battery of diagnostics, including parallel analysis, reliability statistics such as McDonald’s omega of 0.89, and comparison against alternative weighting schemes, all of which supported its use as a regional capability measure.

The theoretical heart of the paper is a concept the authors call green capability infrastructure. Drawing on general-purpose technology theory, knowledge spillover theory, and absorptive capacity theory, they argue that digital transformation functions less like ordinary capital and more like an enabling layer for sustainability: it reduces the cost of searching for and transmitting knowledge, lowers barriers to adopting clean technologies, and helps shift economic activity toward less energy-intensive sectors. Crucially, the framework generates testable predictions that individual theories alone do not produce, namely that digital capability should correlate with green performance, that part of the relationship should travel through innovation, and that the association should strengthen once provinces accumulate enough digital capability to absorb and exploit new knowledge.

The empirical results are striking. In the preferred fixed-effects specification, a one-standard-deviation increase in the DTI corresponds to an energy-efficiency gain equal to roughly 10 percent of the sample mean. Energy efficiency here is measured as real GDP per unit of final energy consumption, a metric aligned with Vietnam’s National Energy Efficiency Program. The association survives a gauntlet of robustness checks: it holds when the index is rebuilt with entropy-weighted or equal-weight methods, when the outcome is switched to green total factor productivity computed with carbon dioxide treated as an undesirable output, and when the analysis is restricted to manufacturing energy intensity to rule out the possibility that service-heavy provinces are simply more efficient by composition.

Perhaps the most consequential finding concerns geography. Using a Spatial Durbin Model, the researchers decomposed the total association into direct and indirect components and found that approximately 37.5 percent of the fitted DTI-energy-efficiency relationship is indirect, meaning it operates through spatially neighboring provinces. Global Moran’s I statistics confirmed significant positive spatial autocorrelation in both digital capability and energy efficiency, with a high-high cluster centered on the Red River Delta and a persistent low-low cluster in the Northwestern Uplands. When the authors shuffled the spatial weight matrix at random, the fitted indirect effect collapsed to statistical insignificance while the direct effect remained intact, evidence that the spillover pattern depends on the actual geographic ordering of provinces rather than on the data’s marginal distribution alone.

The study also quantifies a plausible transmission mechanism. In sequential pathway models, stronger digital capability predicts higher patent activity, and patent activity in turn predicts better energy efficiency. The product-of-coefficients estimate implies that innovation accounts for an indicative 38 to 43 percent of the total digital-green association, a figure that remained stable when research and development intensity was substituted for patents. The authors are careful to note that their innovation measures are general rather than green-specific, so the evidence supports an innovation-consistent pathway rather than a proven green-innovation channel. Still, the magnitude suggests that digital infrastructure pays its largest environmental dividends when paired with functioning innovation ecosystems.

Nonlinearity adds a third layer to the story. Hansen panel threshold regression identifies a single breakpoint at a DTI value of 0.487, corresponding to the 60th percentile of the distribution. Below that threshold, the marginal association between digital capability and energy efficiency is modest; above it, the association more than doubles. The pattern is consistent with absorptive-capacity theory, which predicts that regions with sufficient complementary capabilities benefit disproportionately from knowledge flows. Comparisons with alternative threshold variables strengthen the interpretation: environmental regulation produces no significant threshold, and the digital-capability threshold remains evident after controlling for income per capita. The authors emphasize that the specific numerical cutoff is context-specific to Vietnam’s indicator scale, while the regime-testing framework itself is potentially transferable to other economies.

The researchers are notably candid about the limits of their design. This is an observational study, not an experiment, and every result is framed as a robust association rather than a causal effect. An instrumental-variable strategy exploiting distance to pre-2009 fiber-optic trunk lines produced a larger estimate, but the authors decline to treat it as causal because historical fiber proximity may correlate with roads, electricity infrastructure, and administrative capacity. Reverse causality, omitted variables, and the coarse provincial unit of analysis all remain live concerns, and the paper’s mediation results are explicitly labeled mechanism-consistent rather than identified. That methodological honesty is itself part of the contribution: the study demonstrates how far carefully bounded spatial associations can be pushed without overclaiming causal certainty.

The policy implications are correspondingly measured but pointed. Because roughly a third of the fitted association is indirect, the results support evaluating shared digital infrastructure, regional data platforms, and inter-provincial coordination mechanisms jointly rather than province by province. The threshold finding suggests that provinces near the capability boundary, roughly 12 to 13 of the 63 provinces in the 40th to 60th percentile band, may gain the most from complementary investment in innovation and governance capacity, while lower-capability provinces concentrated in the Northern Uplands and Central Highlands still need foundational connectivity first. The authors caution that their estimates refer to Vietnam’s pre-2025 63-province geography and cannot be mapped mechanically onto the country’s newly consolidated 34-unit administrative structure.

For a world searching for affordable levers to accelerate decarbonization, the Vietnamese evidence carries a provocative message: the green transition may depend not only on solar panels and wind farms but on the invisible infrastructure of data, platforms, and digital governance that determines how quickly clean knowledge spreads. If the findings hold up under firmer identification, the digital and green transitions may be less parallel tracks than a single intertwined pathway, and the regions that invest early in both could find themselves crossing capability thresholds that make every subsequent environmental gain easier to achieve.

Subject of Research: Spatial and threshold effects of digital transformation indicators on green transition outcomes across Vietnamese provinces

Article Title: Digital transformation indicators for green transition: Spatial spillovers, innovation pathways, and regime heterogeneity in Vietnam

Article References: Pham, T. T., Nguyen, T. D., Luu, H. D., Tran, A. Q., Trinh, K. C., Le, K. C., & Nguyen, M. H. (2026). Digital transformation indicators for green transition: Spatial spillovers, innovation pathways, and regime heterogeneity in Vietnam. Environmental and Sustainability Indicators, 32, Article 101557. https://doi.org/10.1016/j.indic.2026.101557

Image Credits: AI Generated

DOI: 10.1016/j.indic.2026.101557

Keywords: digital transformation, green transition, Vietnam, spatial spillovers, energy efficiency, green total factor productivity, innovation pathway, absorptive capacity, threshold regression, spatial econometrics, sustainability indicators, digital governance

Green total factor productivity (GTFP) serves as a more comprehensive measure that extends beyond the mere economic output of a nation. It incorporates environmental outputs and inputs, providing a nuanced understanding of how natural resources are being utilized and their impact on ecological health. This study underlines the significance of transitioning to a green economy, where businesses and nations can quantify their environmental efficiency alongside traditional economic performance indicators. The authors argue that the evolution of GTFP is crucial in the context of sustainable development goals (SDGs), particularly in regions where economic expansion often comes at a substantial environmental cost.

The study highlights a notable divergence in GTFP among emerging economies and those heavily reliant on natural resources, revealing patterns of both productivity enhancement and environmental degradation. For emerging economies, there is a pressing need to incorporate sustainability into their growth models. On the other hand, resource-intensive economies face the challenge of reconciling their economic dependencies on fossil fuels and other natural resources with the undeniable imperative of reducing their carbon footprints. The findings suggest that without intentional policy frameworks aimed at promoting green productivity, these economies risk falling behind in the global transition toward sustainability.

Zaman and Valiyattoor employed advanced statistical methods to analyze GTFP across various nations, uncovering critical trends and disparities. By assessing both the input and output side of productivity, the researchers present a detailed analysis of how productivity increases can align with environmental improvements. Their methodology encompasses a diverse range of variables, including energy consumption, emissions, and economic growth rates, allowing a transparent evaluation of economies’ ecological footprints. This rigorous analytical approach equips policymakers with the tools necessary for making informed decisions about sustainable economic practices.

A pivotal finding in the study is the concept of convergence, which refers to the tendency of economies to move toward similar productivity levels over time. This convergence can manifest in different ways—some countries may leap ahead by adopting innovative practices, while others may lag due to systemic inefficiencies or resource vulnerabilities. The authors suggest that enhancing GTFP could serve not only as a measure for competitiveness but also as a pivotal strategy for achieving ecological balance. Governments are thus encouraged to create ecosystems that foster innovation in green technologies, empowering businesses to adopt more sustainable practices.

The importance of collaboration cannot be overstated, as the study indicates that collective action among nations will play a vital role in enhancing GTFP. The global landscape is increasingly interlinked, with countries trading in goods and services that often have hidden environmental costs. By promoting international partnerships focused on sustainability, nations can leverage knowledge sharing and resource optimization, ultimately driving up GTFP for all. The synergy of joint efforts can lead to technological advancements that might otherwise be unattainable in isolation.

One of the most striking implications of the study revolves around the potential for job creation within the green economy. As countries prioritize GTFP, the transition toward sustainable practices demands a workforce skilled in new technologies and methodologies. This shift creates a dual opportunity: enhancing environmental outcomes while simultaneously generating employment in sectors focused on renewable energy, sustainable agriculture, and green technology. Policymakers are thus encouraged to invest in education and training programs that equip workers with relevant skills, ensuring that communities can benefit from the burgeoning green economy.

The research also emphasizes the role of private sector engagement in producing greener outcomes. Businesses that embrace sustainability not only improve their bottom lines but also become central players in the broader narrative of economic transition. The study provides examples of companies that have successfully integrated sustainable practices into their operational ethos, showcasing that innovation can lead to both economic success and environmental wellbeing. This dual commitment can serve as a blueprint for other organizations aiming to navigate the complexities of modern business landscapes.

In the realm of investment, the authors argue for a critical reassessment of where and how capital flows. Sustainable investments are increasingly attractive to investors seeking to align their portfolios with ethical considerations. The study highlights the rise of green bonds and funds dedicated to fostering environmentally friendly projects. Capital markets can play a transformational role in facilitating the transition to green economies when aligned with clear, measurable goals associated with GTFP.

The journey toward a sustainable economy requires resilience in the face of setbacks. Emerging economies, in particular, must tackle a myriad of challenges, from regulatory hurdles to infrastructural limitations. The researchers advocate a gradual approach to policy implementation, allowing nations the flexibility to learn and adapt their strategies in response to evolving conditions. This iterative process is essential for sustained progress, ensuring that countries do not rush toward goals that could compromise their economic stability.

Zaman and Valiyattoor’s study does not shy away from addressing the complexities and potential trade-offs inherent in pursuing GTFP. There is a fine balance to strike; the pursuit of environmental sustainability must be intricately woven with economic feasibility. Policymakers should be mindful that measures promoting GTFP do not inadvertently stifle economic growth or exacerbate inequalities. Instead, a holistic approach that recognizes the interconnectedness of economy and environment can foster long-term prosperity for all stakeholders.

Ultimately, the research conducted by Zaman and Valiyattoor serves as a clarion call for countries grappling with the dual pressures of economic growth and environmental degradation. As the climate crisis looms large, the insights gleaned from their analysis of GTFP can inform crucial policy decisions. Nations must embrace the challenge of rethinking productivity through a green lens, bolstering not just their own economies but contributing to the global effort for a sustainable future. Achieving this ambitious goal requires unwavering commitment, innovation, and, most importantly, collaboration among all sectors of society.

With this in mind, the study lays a strong foundation for future inquiries into green productivity, providing a launching pad for further research that can deepen our understanding of sustainable economic practices. The implications of this work extend far beyond academic discourse; they touch the lives of individuals, communities, and ecosystems around the world. As we forge ahead, the principles emerging from Zaman and Valiyattoor’s research will guide policymakers and business leaders alike in fostering an economy that honors both people and the planet.

Subject of Research: Green Total Factor Productivity and Convergence in Emerging and Resource-Intensive Economies

Article Title: Evaluating the green total factor productivity and convergence among emerging and resource intensive economies.

Article References:
Zaman, A.U., Valiyattoor, V. Evaluating the green total factor productivity and convergence among emerging and resource intensive economies.
Discov Sustain 6, 1053 (2025). https://doi.org/10.1007/s43621-025-01614-x

Image Credits: AI Generated

DOI: 10.1007/s43621-025-01614-x

Keywords: Green total factor productivity, sustainability, emerging economies, resource intensive economies, convergence, environmental impact, economic growth, green economy.

The concept of GTFP is instrumental to understanding the significance of this research. Unlike traditional total factor productivity, which primarily focuses on input-output efficiency, GTFP incorporates environmental performance, accounting for carbon emissions and resource utilization. Enhancing GTFP essentially means achieving economic growth with minimized ecological footprints. The CR Express, operating as a high-efficiency international rail link connecting China with European markets, offers a green alternative to air and road freight, potentially serving as a catalyst for improvements in GTFP along its nodes.

The study’s analyses reveal a counterintuitive but promising outcome: the opening of the CR Express has not only avoided the degradation of green productivity in the cities it traverses but has significantly enhanced it. Empirical results robustly indicate that node cities experienced an average GTFP increase of approximately 3.3 percentage points following the connectivity improvements initiated by the CR Express. This robust finding survives multiple robustness tests, underscoring the effectiveness of the green logistics and innovative dynamics activated by the international rail freight network.

Regional heterogeneity emerges as a defining feature of the CR Express’s impact on GTFP. When dissecting the influence by route orientation, the research identifies that both the eastbound and westbound rail routes contribute positively, increasing the GTFP of node cities by 2.8% and 5.1%, respectively. However, the central route, despite its strategic position, does not produce a statistically significant effect on green productivity. Such disparities hint at underlying variations in economic structure, industrial composition, and possibly the degree of integration with global markets among regions.

Geographic considerations further enrich the narrative of green productivity enhancement. The CR Express demonstrates distinct effects across China’s diverse territorial landscape. Nodes situated in the central and western regions exhibit measurable improvements in GTFP—quantified as increases of 2.5% and 3.7%, respectively—while eastern node cities register positive yet statistically insignificant changes. This spatial differentiation underscores the potential of the CR Express to catalyze green economic transformation in less-developed inland areas, which often grapple with environmental strains and industrial upgrading challenges.

Transportation connectivity extends beyond mere physical infrastructure; it also defines economic linkages. The study highlights that the breadth of foreign node cities accessible—essentially the international reach of domestic nodes—has a meaningful positive association with GTFP. This finding corroborates the notion that deepening global trade networks through efficient logistics channels encourages knowledge spillovers, green technology diffusion, and the reshaping of industrial structures towards lower carbon intensity.

A crucial dimension of this research lies in its exploration of the mechanisms through which the CR Express influences GTFP. Two primary conduits emerge from the analysis: the elevation of green innovation levels and the agglomeration of industries within node cities. The former refers to increased research and development activities targeting environmental technologies, improvements in energy efficiency, and process innovations. The latter pertains to the concentration of economic activities that leverage proximity advantages, such as knowledge exchange and supply chain integration, fostering more sustainable industrial ecosystems. Mediation effect quantification suggests that green innovation accounts for approximately 5.0% of the GTFP increase, while industrial agglomeration contributes an even larger share of 7.7%.

From a policy perspective, these nuanced findings hold profound implications for steering China’s trajectory toward high-quality, green development. Encouraging and supporting a wider range of cities—particularly those inland—to engage directly or indirectly with the CR Express economic belt emerges as a vital strategy. By mobilizing their unique factor endowments and tapping into efficient logistics networks, these cities can catalyze more balanced regional growth while promoting sustainability.

Furthermore, the eastbound and westbound rail routes, identified as pivotal in enhancing green productivity, deserve prioritized attention in transportation infrastructure investments. Bolstering these corridors ensures that their growth-promoting and environmentally beneficial impacts are maximized. Simultaneously, greater emphasis on node cities in central and western China aligns infrastructural development with empirical evidence on regional efficacy, potentially narrowing pervasive development disparities.

To sustain and amplify the green productivity gains, nurturing green innovation ecosystems within node cities presents a compelling pathway. Proposals include initiating China-Europe green innovation exchange platforms, constructing demonstration bases for green industry collaboration, and facilitating green technology transfer hubs anchored in CR Express nodes. Such initiatives would not only reinforce the scientific and technological foundations of green growth but also translate into practical industrial advancements.

In parallel, fostering industrial agglomeration within these nodes requires a supportive business environment. This encompasses upgrading infrastructure, simplifying administrative processes, and introducing fiscal incentives targeted at high-end, clean industries. Establishing dedicated industrial parks that specialize in green sectors could serve as tangible embodiments of this approach, engendering innovation spillovers and economies of scale advantageous for sustainable urban economies.

While the study advances the frontier of understanding the CR Express’s impact on green productivity, it also candidly acknowledges certain limitations, particularly pertaining to data sources. The research relies on prefecture-level city data rather than direct enterprise-level analyses due to a mismatch in enterprise data coverage and the opening timelines of the railway. This approach might obscure some granularity related to individual firm behaviors and sector-specific dynamics but nonetheless offers robust city-level insights. Future research endeavors are encouraged to refine data collection and analytical methods to delve deeper into firm-level mechanisms and extend the evidence base.

The implications of this study extend beyond China’s borders, positioning the CR Express as a potential model for other international rail freight corridors that aspire to combine economic expansion with environmental stewardship. As global trade continues evolving amid climate challenges, rail-based logistics systems presenting lower carbon footprints—along with supportive policy ecosystems—may define the future of green globalization.

In conclusion, the CR Express exemplifies how infrastructural innovation can serve as an environmental and economic lynchpin in modern development. By linking distant regions through greener transportation and fostering conditions conducive to green innovation and industrial clustering, it drives measurable improvements in green total factor productivity. These findings not only validate the green credentials of rail freight but also provide actionable insights to policymakers, businesses, and researchers committed to sustainable development.

The unfolding story of the CR Express underscores an essential narrative: environmental sustainability and economic vitality are not mutually exclusive but can be synergistically advanced through deliberate integration of innovation, infrastructure, and industrial strategy. Looking forward, sustained investments and targeted policies will be pivotal in scaling the green productivity benefits of such international freight corridors, providing a replicable pathway for global sustainable development in the transportation era.

Subject of Research: The impact of the China-Europe Railway Express (CR Express) on the green total factor productivity (GTFP) of Chinese cities from 2008 to 2019.

Article Title: Can international railway express improve green total factor productivity?

Article References:
Yin, H., Zhang, L., Wan, C. et al. Can international railway express improve green total factor productivity?.
Humanit Soc Sci Commun 12, 638 (2025). https://doi.org/10.1057/s41599-025-04950-5

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