The butterfly effect of cloud computing on the low-carbon economy

Abstract

This paper investigates the long-term butterfly effect of cloud computing on the low-carbon economy against the dual backdrop of the digital age and carbon neutrality. Utilizing a full-sample and sub-sample approach, the study identifies the complex interrelationship between the China Cloud Computing Index (CCI) and the Low Carbon Index (LCI). The quantitative examination reveals how CCI impacts LCI – both favorably and unfavorably. The positive effects suggest that cloud computing serves as a motivator in the environmentally friendly economy. In case of negative impacts, however, it is not possible to always determine the incentive effects owing to the large amounts of energy consumption generated by cloud computing data centers. Meanwhile, the positive influence of LCI on CCI indicates how the pursuit of low carbon-economy (as a goal) will bring opportunities for the explosive growth of the cloud computing industry. Cloud computing has increasingly prompted the fluctuation of carbon emissions in the whole ecosystem. By exploring this butterfly effect, this study digs deeper into the complex interrelationship between the discussed indexes. It is expected that the study outcomes will offer meaningful recommendations for the two main vectors of economic development - greenization and digitalization.