The Impact of Digital Economy on Industrial Carbon Emission Efficiency: Evidence from Chinese Provincial Data

Abstract

Digital economy has become an important driving force for green economic growth in China. Based on the province-level data of China from 2003 to 2018, this paper constructed the Total-factor Nonradial Directional Distance Function (TNDDF) model to measure the carbon emission efficiency of industrial sector and discussed the impact of digital economy on carbon emission efficiency. Empirical analysis shows that the carbon emission efficiency of China’s industrial sector is low, and there is obvious regional heterogeneity where the carbon emission efficiency of eastern China is higher than that of central and western China. Areas with high level of digital economy development have higher carbon emission efficiency, and digital economy is conducive to promoting energy conservation and pollution reduction in China’s industrial sector. The optimal threshold interval of digital economy for promoting carbon emission efficiency is explored by means of threshold model. In view of this, the Chinese government should vigorously develop the digital economy, promote industrial enterprises to networking and digital evolution, and improve the efficiency of carbon emission as well.