The mitigating effect of new digital technology on carbon emissions: evidence from China.

Abstract

This paper investigates the impacts of new digital technology on carbon emissions in China. To better capture the feature of new digital technology, we distinctively measure it using the invention patent stock of new generation information technology industry. The empirical results show that the development of new digital technology significantly reduces carbon dioxide (CO2) intensity. The results are still robust after addressing the endogeneity issues using instrumental variable regressions. The carbon reduction mechanisms of new digital technology include reducing energy intensity, optimizing energy structure, and advancing treatment technology. We further confirm the spatial spillover and nonlinear effects of new digital technology on CO2 intensity and the moderating effect of urban digitalization in carbon reduction. The study suggests that the potential of new digital technology in reducing carbon emissions should be highly attentioned by governments.