Internet Development, Consumption Upgrading and Carbon Emissions-An Empirical Study from China.

Abstract

Internet development has changed Chinese people's consumption behavior, gradually expanding from survival consumption (SC) to development and enjoyment consumption (DEC) trends. Consumption is the new engine driving China's economic growth and the terminal of carbon emissions. Simultaneously, China is undergoing a profound change toward the "double carbon" goal, the space for carbon emission reduction in traditional fields is gradually compressed. Therefore, it is necessary to explore carbon emissions from the perspective of consumption terminals. Based on provincial panel data, we use the fixed effects model and mediating effects model to explore the relationship between Internet development, consumption upgrading, and carbon emissions in a unified research framework. The findings show that: (1) Internet development leads to an increase in carbon emissions. A finding remains significant after using instrumental variables to mitigate endogeneity; (2) Internet development promotes consumption upgrading, reflected in development and enjoyment consumption expenditure; (3) Internet development contributes to increasing carbon emissions through consumption upgrading. Heterogeneity analysis shows that Internet development in eastern China significantly contributes to carbon emissions through consumption upgrading, while it is insignificant in central and western regions. The Internet development leading region contributes to an increase in carbon emissions through consumption upgrading. In comparison, the lagging region is insignificant. This study can provide a reference for policymakers in China or other countries to formulate energy-saving and emission-reduction policies in the Internet industry and provide a scientific basis for advocating people's low-carbon consumption behavior and achieving carbon emission reduction at the consumption terminal.