The Impact of Digital Economy on Total Factor Carbon Productivity: Empirical Analysis Based on Spatial and Mediating Effects

Abstract

The digital economy has been considered a powerful weapon in addressing global warming. However, the “win-win” effect of the digital economy on economic development and carbon reduction is still unclear. With China’s provincial panel data from 2012 to 2019, this paper intends to explore the direct and spatial effects of the digital economy on total factor carbon productivity (TFCP), further revealing the influencing mechanism from the perspective of energy intensity. The results show that the digital economy contributes to boosting TFCP and this conclusion is robust after adopting some robustness tests and solving the endogeneity problem. Moreover, the impact of the digital economy on TFCP has significant positive spillovers. Finally, the digital economy can significantly boost TFCP through reducing the energy intensity. Considering the regional heterogeneity, the impact of the digital economy on TFCP is significantly positive in Mid-Eastern China, however, the impact is not significant in other areas. The above findings provide strong policy guidance for the region to boost the digital economy and TFCP comprehensively, thus stimulating the green transition of the economy.