The Impact of Labor Misallocation on Carbon Emissions in China: Whether Digital Space Matters

Abstract

Digital networks have brought about more frequent economic interaction. Labor misallocation influences regional green development through digital channels. Constructing a digital divide matrix among 30 Chinese provinces, a spatial Durbin model was applied in this paper to address the digital spillover of labor misallocation on carbon emission. We obtained the following research findings: (1) The digital divide in China tends to spread from east to west between 2006 and 2021. (2) Labor misallocation impacts carbon emissions through digital spillover. Specifically, labor misallocation increases local carbon emissions, as well as carbon emissions in digital adjacent regions. (3) The widening digital divide exacerbates the digital spillover effects of labor misallocation. The result’s plausibility was further verified by generalized spatial two-stage least squares. (4) Labor misallocation increases carbon emissions when the digital divide exceeds a threshold. The results provide an effectual reference for digital governance in Chinese carbon emissions.