Research on the nexus between the digital economy and carbon emissions -Evidence at China's province level

Abstract

China is currently entering the era of the digital economy. Further development of the digital economy may provide a new dynamic mechanism to achieve carbon peak and carbon neutrality goals. Therefore, the digital economy activities in the process of reducing carbon emissions need to be urgently discussed. Using a panel dataset covering 30 Chinese provinces from 2013 to 2020, a two-way fixed effect model was employed to analyze the impact of the digital economy on carbon emissions. The results indicated that, during the study period, regional differences in the level of digital economy development were large. In addition, the spatial pattern showed a decrease from east to west. The development of the digital economy significantly reduced the intensity of carbon emissions. This conclusion that was supported by robustness tests and endogenous analysis. Moreover, this effect exhibited heterogeneity with respect to energy consumption, sub-indicators of the digital economy, and policy support. Additionally, government support positively moderated the relationship between the digital economy and carbon emissions. This moderating effect also showed heterogeneity. Most importantly, the relationship between the digital economy and carbon emissions was transmitted through different dimensions of science and technology innovation. These findings provide a further scientific basis for developing the digital economy and promoting green development, which is beneficial for achieving carbon peak and carbon neutrality.