The Digital Economy and Carbon Intensity: Empirical Evidence from Chinese Cities

Abstract

This study examines how the development of the digital economy affects urban carbon intensity. Using a sample of 281 prefecture-level cities in China from 2011 to 2021, we employ principal component analysis and entropy weighting analysis to assess the comprehensive level of digital economic development. Various models, such as benchmark regression, variable substitution, interactive fixed effects, robust standard errors with double clustering, and instrumental variables, are employed to empirically analyze the impact and mechanisms of digital economic development on carbon intensity in multiple Chinese cities. The results indicate that the development of the digital economy can reduce urban carbon intensity. Based on these findings, this paper puts forward policy recommendations to promote digital economic development and reduce carbon intensity, including increasing efforts in digital economic development and related infrastructure construction, narrowing the regional disparities in digital economic development, improving regulations and systems related to low-carbon development in the digital economy, and adapting to international economic and political development trends, in order to contribute to the achievement of the "dual carbon" goals.