Examining the role of the digital economy in carbon production efficiency under incentive-based environmental regulations: a spatial spillover perspective

Abstract

Abstract As China transitions towards high-standard growth development, the digital economy profoundly influences the formation of a new paradigm for reducing carbon emissions in this new era. This study examines how the digital economy impacts carbon productivity within the framework of incentive-based environmental regulations. Spatial econometric methods were employed for empirical analysis using provincial-level data from 2011 to 2021. The study’s findings suggest that: (I) Within the resource tax weight matrix, the digital economy shows a positive local effect on carbon productivity, a conclusion that withstands robustness testing. (II) Under the spatial Durbin model with heterogeneous coefficients, certain provinces exhibit either positive or negative spillover effects. (III) Both vehicle and vessel taxes and environmental taxes show a dual-threshold effect, while resource taxes demonstrate only a single-threshold effect. Additionally, all these factors present a nonlinear moderating effect that positively influences the relationship. As per these outcomes, this study offers the following proposed actions to foster synergistic development of the economy driven by digital technologies and the effectiveness of carbon production, thus facilitating high-quality, sustainable economic growth: (I) Enhance investment in the development of the digital economy. (II) Implement suitable local resource, environmental, and vehicle and vessel taxes.