The effect of the digital economy on carbon emissions: an empirical study in China.

Abstract

Under the new development model, the digital economy has become a new engine to promote the green development of the economy and achieve the goal of "double carbon." Based on panel data from 30 Chinese provinces and cities from 2011 to 2021, the impact of the digital economy on carbon emissions was empirically studied by constructing a panel model and a mediation model. The results show that firstly, the effect of the digital economy on carbon emissions is a non-linear inverted "U" shaped relationship, and this conclusion still holds after a series of robustness tests; secondly, the results of the benchmark regression show that economic agglomeration is an essential mechanism through which the digital economy affects carbon emissions and that the digital economy can indirectly suppress carbon emissions through economic agglomeration. Finally, the results of the heterogeneity analysis show that the impact of the digital economy on carbon emissions varies according to the level of regional development, and its effect on carbon emissions is mainly in the eastern region, while its impact on the central and western regions is weaker, indicating that the impact effect is primarily in developed regions. Therefore, the government should accelerate the construction of new digital infrastructure and implement the development strategy of the digital economy according to local conditions to promote a more significant carbon emission reduction effect of the digital economy.