Exploring the Impacts of the Digital Economy on Carbon Emissions: Lessons from 268 Cities in China

Abstract

Based on the panel data from 268 prefecture-level cities in China from 2011–2020, this study explores the impact of the digital economy on China’s carbon emissions and its mechanisms. The results reveal that the digital economy has a significant urban carbon emission reduction effect, and the robustness test results confirm the reliability of this conclusion. The heterogeneity analysis indicates that regional and city endowment influences this effect, with the effect being relatively stronger in the eastern region and high-grade cities, whereas the effect is not notable in the central and western regions and low-grade cities. In addition, digital economy development in the central region and non-resource cities can reduce carbon emissions, although its impact on peripheral and resource cities remains uncertain. Further mediation effect tests show that the urban carbon emission reduction effect occurs through energy consumption reduction, industrial structure upgrading, and green technology innovation. This study contributes to a deeper understanding of the relationship between the digital economy and carbon emissions, which is significant for formulating digital economy policies to reduce carbon emissions.