Global insights on the impact of digital infrastructure on carbon emissions: A multidimensional analysis

Abstract

With the swift expansion of global digital infrastructure, understanding its impact on carbon emissions is essential for addressing global warming. This study develops a digital infrastructure indicator system. We use panel data from 83 countries spanning 2005 to 2021 to thoroughly examine the effects and underlying mechanisms of digital infrastructure on carbon emissions. Our findings indicate that digital infrastructure contributes to an increase in carbon emissions worldwide. Mechanism tests suggest that this increase is facilitated by capital agglomeration and fossil energy consumption. However, the impact of digital infrastructure on carbon emissions shows regional variations. In the Arab region, digital infrastructure development seems to reduce carbon emissions, a trend also observed, albeit potentially, in the CIS, Africa, and the Americas. In contrast, Europe and the Asia-Pacific experience a significant surge in carbon emissions due to digital infrastructure. Population density and the proportion of renewable energy emerge as critical threshold variables. Beyond a certain population density, the impact on carbon emissions intensifies, whereas an increase in renewable energy share beyond a specific point mitigates this effect. Robustness tests confirm that digital infrastructure elevates both per capita carbon emissions and carbon intensity, with digital markets and technologies notably amplifying carbon emissions.