Shared prosperity, energy-saving, and emission-reduction: Can ICT capital achieve a “win-win-win” situation?

Abstract

The continuous innovation of information and communication technology (ICT) provides new opportunities for the synergistic development of shared prosperity, energy-saving, and emission-reduction. Based on Chinese provincial data from 2000 to 2019, we analyzed the impact of income inequality on energy consumption and carbon emissions from both theoretical and empirical perspectives, focusing on the impact mechanism, moderating effect, and threshold effect of ICT capital on the relationship between income inequality and energy consumption and carbon emissions. The study finds that income inequality increases energy consumption and carbon emissions, whereas regardless of whether it is hardware, software, or communication capital, ICT capital effectively mitigates the growth of energy consumption and carbon emissions caused by income inequality, with a significant inhibitory effect. Furthermore, ICT capital has a stronger moderating effect on energy consumption and carbon emissions in urban and developed eastern region. Notably, the effect of income inequality on the growth of energy consumption and carbon emissions diminishes non-linearly with increasing ICT capital. This study confirms that an increase in ICT capital contributes to the “win-win-win” situation of shared prosperity, energy-saving, and emission-reduction, providing useful empirical guidance for China and similar countries to fully utilize ICT capital in the digital economy.