Internet development and carbon emission-reduction in the era of digitalization: Where will resource-based cities go?

Abstract

Since human beings entered the digital era, the economic growth mode, social structure and environment have undergone fundamental changes. Internet industry plays a key role in urban energy transformation and industrial transformation and upgrading. Whether Internet development can effectively contribute to low-carbon urban transformation requires further testing. According to panel data from 283 cities in China, we examine the effect and impact mechanism of Internet evolution on urban carbon emissions. First of all, this study constructs a two-way fixed effects model to test the impact of the Internet on urban carbon emissions. The empirical results show that Internet effectively promote urban low-carbon transition. Then we used a series of robust test, including applying the instrumental variables approach, replacing the explanatory variables, and using a multi-period difference-in-difference (DID) model, to prove the validity of the basic conclusion. The mechanism analysis reveal that Internet development reduce urban CO2 emissions by upgrading industrial structure, promoting green innovation, and strengthening environmental regulation. Moreover, Internet can promote low-carbon development of resource-based cities. This paper provides an important theoretical basis for effectively promoting low-carbon transformation and development at the urban level in China from the perspective of Internet development.