Breaking the resource curse: The impact of digital economy on the sustainable transformation of resource-based cities

Resource-based cities (RBCs) depend heavily on the extraction and processing of natural resources, resulting in relatively simple economic structures. However, the rise of the digital economy (DIGITAL) presents numerous opportunities for economic diversification and sustainable development. Further investigation is necessary to explore DIGITAL's potential to overcome the resource curse. This study examined the influence of digital economic development on the sustainable transformation of 115 RBCs in China from 2011 to 2019. Robustness and heterogeneity tests were conducted to ensure reliability of the findings. This study concluded that DIGITAL plays a pivotal role in driving the sustainable transformation of resource-based cities (STRBC). This conclusion was supported by various robustness tests. Urban economic efficiency and the vitality of innovation and entrepreneurship were identified as key channels through which DIGITAL contributes to STRBC. Moreover, governmental environmental concern can enhance DIGITAL's role in promoting STRBC. Furthermore, DIGITAL is particularly crucial for mature, declining, and regenerating cities, and has a stronger impact on cities with larger spatial scales. This may be attributed to factors such as the levels of economic development, infrastructure construction, and policy support in these regions.