With the vigorous development of digital economy based on digital technologies such as Internet of things (IoT), big data, and artificial intelligence, new vitality has been injected into China’s economic model. Inclusive green growth (IGG) supports the transformation of society towards a better quality of life and well-being, as well as environmental protection. Therefore, it is crucial to identify the main drivers of IGG. However, IGG is subject to a variety of interpretations and lacks definitional clarity. To brigade this gap, this study primarily evaluates the performance of IGG and explores the key drivers on IGG in China. Specifically, the data envelopment analysis (DEA) model is employed to calculate IGG for 281 cities in China during 2005–2020. Subsequently, we take advantage of a nest of machine learning (ML) algorithm to demonstrate the vital drivers of urban IGG, which avoids the defects of endogenous linear hypothesis of traditional econometric methods. The results indicate that digitization represented by the IoT and other digital technology is the core drivers of the urban IGG in the overall sample, accounting for about 50% among all of drivers. This finding provides new evidence supporting the “high-quality development” strategy in China, as well as shedding light on grasping the principal fulcrum to achieve the transformation towards IGG in developing economies similar to China.

To tackle the increasingly severe environmental challenges, including climate change, we should pay more attention to green growth (GG), a path to realize sustainability. Human capital (HC) has been considered a crucial driving factor for developing countries to move towards GG, but the impact and mechanisms for emerging economies to achieve GG need to be further discussed. To bridge this gap, this paper investigates the relation between HC and GG in theory and demonstration perspective. It constructs a systematic theoretical framework for their relationship. Then, it uses a data envelopment analysis (DEA) model based on the non-radial direction distance function (NDDF) to measure the GG performance of China’s 281 prefecture level cities from 2011 to 2019. Ultimately, it empirically tests the hypothesis by using econometric model and LightGBM machine learning (ML) algorithm. The empirical results indicate that: (1) There is a U-shaped relationship between China’s HC and GG. Green innovation and industrial upgrading are transmission channels in the process of HC affecting GG. (2) Given other factors affecting GG, HC and economic growth contribute equally to GG (17%), second only to city size (21%). (3) China’s HC’s impact on GG is regionally imbalanced and has city size heterogeneity.