The Impact of the Digital Economy on Total-Factor Carbon Emission Efficiency in the Yellow River Basin from the Perspectives of Mediating and Moderating Roles

Abstract

China’s digital economy has been expanding rapidly in the past decade. This expansion is having a profound impact on the country’s economy. Using panel data on 97 prefecture-level cities in the Yellow River Basin from 2011 to 2020, this study investigates the multifaceted relationship between the digital economy and total-factor carbon emission efficiency. The research yields three key findings: (1) The digital economy positively enhances overall carbon emission efficiency. This conclusion is drawn with robustness tests. (2) Green technology innovation serves as a partial mediator between the digital economy and total-factor carbon emission efficiency, and this mediation role is influenced by government intervention, which negatively moderates the relationship between the digital economy and green technology innovation but positively impacts the mediation role of green technology innovation between the digital economy and total-factor carbon emission efficiency. (3) The positive impact of the digital economy on total-factor carbon emission efficiency is more significant in the upper reaches, lower reaches, and resource-based cities of the Yellow River Basin. These findings provide new perspectives and empirical evidence for better understanding the relationship between digital economy development and total-factor carbon emission efficiency. They also provide policy recommendations for achieving strategic objectives, including digital economy development, carbon emission reduction, carbon peaking, and carbon neutrality.