Digitizable Product Trade Development and Carbon Emission: Evidence from 94 Countries

Abstract

In the face of increasingly severe climate change and its destructive effects, how to effectively reduce carbon dioxide emissions has become a challenging task. Developing a digital economy provides opportunities for countries to reduce pollution and carbon emissions and reach a goal of carbon neutrality. As an emerging trade form, digitizable product trade is of great significance to promoting economic growth and carbon emission reduction. This paper selects panel data for 94 countries from 2001 to 2019 and adopts the STIRPAT model to analyze the impact effect and impact mechanism of digitizable product trade on carbon emissions. Research results show that developing digitizable product trade will help countries reduce carbon emissions. The conclusion is robust by replacing the explained variable and core explanatory variable. The carbon emission reduction effect has heterogeneity due to differentiated national income levels and product categories. Mechanism analysis shows that digitizable product trade reduces carbon emissions through the technology effect. Our analysis indicates that countries developing digital trade and digital technology and actively responding to environmental issues have a greater chance of reduced carbon emissions.