A Study on the Impact of Digital Economy on CO2 Emissions in China: A Mediation Effect Analysis Based on Urbanization

Abstract

Environmental change is driven by many factors, including economic development and technological progress. As the adverse effects of global warming become more pronounced, environmental issues have received widespread attention, and in recent years China has vigorously promoted ecological civilization to combat climate change while promoting urbanization. As CO₂ levels are intimately related to climate change, Chinese President has put up a variety of proposals to reach the aim of "Carbon Peak Carbon Neutralization." In order to contribute to the country's "double carbon" goal, this article uses data between the years of 2012 and 2021 from 30 Chinese provinces and cities to evaluate the impact of the expansion of the digital economy on emissions via urbanization. A mediation effects model is the foundation of the analysis. According to this study, urbanization and CO₂ emissions are both highly influenced driven by the growing digital economy and the urbanization process, respectively. Based on these findings, this paper suggests that in order to achieve the objectives of carbon neutrality and carbon peaking, it is imperative to vigorously develop green digital economy infrastructure, intensify CO₂ emission regulation, and effectively slow down the growth rate of the high-carbon economy.