Heterogeneous effect of digital economy on carbon emission reduction

Abstract

The vigorous development of the digital economy (DIEC) offers a substantial potential for China and global economies to realize the goal of “double carbon”. This study attempts to analyze the heterogeneous effect of DIEC on carbon emission reduction (CERE), in order to extend a valuable reference for effectively achieving the dual-carbon goal. Accordingly, the effect of DIEC on carbon emission scale (CESC) and carbon emission intensity (CEIN) are examined in this paper by using dual fixed effect model and intermediate effect model, respectively. The study findings show that, at first, DIEC significantly supports the CERE while significantly constraining the uplift in CESC and CEIN. Simultaneously, the CERE effect of DIEC contains digital economy dimensional heterogeneity, industry heterogeneity, production and life heterogeneity, and urban-rural heterogeneity. Finally, the DIEC boosts the technological innovation (TEIN) and residents' income (REIN) levels, in order to heighten the CERE. Further, improving invention technology innovation and TEIN is more conducive to catalyzing the reduction of carbon emission in the whole society and the production field. Conversely, the improvement of non-invention technology innovation and rural- and urban residents’ income impedes CERE in the field of life. Thus, the implications of this study are of vital significance for China and the rest of the world to foster CERE and achieve the “dual carbon” goal through DIEC development.