Effects of the Digital Economy on Carbon Emissions: Evidence from China

Abstract

In order to reduce carbon emissions for sustainable development, we analyzed the impact of China’s digital economy development on carbon emissions. Based on the panel data of 30 Chinese provinces from 2009 to 2019, we measured the level of development of China’s digital economy using the entropy method. The relationship between the digital economy and carbon emissions was analyzed from multiple perspectives with the help of the fixed-effects model, the mediated-effects model and the spatial econometric model. The results indicate that the digital economy plays a significant inhibitory role in carbon emissions. In addition, the digital economy inhibits carbon emissions through the innovation effect and the industrial structure upgrading effect. Moreover, the digital economy exhibits a significant spatial spillover effect in dampening carbon emissions. Finally, there is regional heterogeneity in the direct and spatial spillover effect. The findings provide a basis for the digital economy to contribute to carbon emissions reduction and provide relevant policy references for achieving carbon neutrality and sustainable development.