Effective approach toward low-carbon development: Digital economy development enhances carbon efficiency in cities

Abstract

The report of the 20th National Congress of the Communist Party of China (CPC) proposes to accelerate the development of the digital economy and promote “carbon neutrality”. In 2020, China announced a “double carbon” target. In 2022, the size of China's digital economy has reached 7.5 trillion dollars, ranking second in the world. Against this background, this paper takes 211 cities in China from 2011 to 2019 as the research object and tries to sort out the impact of the development of the digital economy on the carbon efficiency of cities in order to find an effective path for cities to realize low-carbon development. The results of the study show that the development of the digital economy significantly improves the carbon efficiency level of Chinese cities. After a series of endogeneity and robustness tests, the conclusion still holds. Public environmental concern and technological innovation are the key mediating paths. In addition, the digital economy has a significant non-linear effect on the carbon efficiency of Chinese cities. On the one hand, the low-carbon effect of the digital economy is only realized when the level of digital economy development is lower than the critical value of 0.040 and higher than the critical value of 0.085; on the other hand, the lower the level of urban carbon efficiency is, the greater the effect of the digital economy on urban carbon efficiency. Further research shows that the digital economy has a significant spatial spillover effect on the improvement of urban carbon efficiency, and the development of the digital economy not only helps to improve the carbon efficiency level of the local city but also positively influences the improvement of the carbon efficiency of neighboring cities through the spatial spillover effect. The heterogeneity study found that in eastern cities and megacities, the digital economy has a more obvious effect on the improvement of carbon efficiency. In the context of the booming digital economy, this paper tries to find an effective new path for urban low-carbon development by means of developing the digital economy.