The impact of digital economy on low-carbon transition: What is the role of human capital?

Abstract

With the global increasingly higher requirements for sustainability, it is of great importance to understand the relationships between the digital economy, human capital, and energy transition becomes crucial, especially in China, the world's largest emitter of greenhouse gases. Using data from 30 provinces between 2012 and 2021, this paper explored the influence of digitalization and human capital on China's low-carbon transition by means of advanced econometric techniques, including dynamic panel models and robustness checks. Our findings revealed that the digital economy significantly enhanced energy efficiency, with human capital acting as a key moderating factor. The analysis highlighted that the higher level of digital infrastructure and skilled labor a region has, the more it would benefit from digitalization in terms of energy efficiency. The results underscore the need for region-specific policies that simultaneously promote digital innovation and human capital development to align China's environmental sustainability goals with its economic growth in the digital era.