The Non-Linear Impact of Industry 4.0 on Carbon Emissions in China’s Logistics Sector

Abstract

This study investigates the impact of Industry 4.0 on carbon emissions within China’s logistics sector, focusing on its potential to support global carbon reduction goals. Utilizing panel data from 30 Chinese provinces between 2011 and 2019, this research employed an Industry 4.0 index alongside IPCC guidelines to estimate logistics emissions. Through fixed effects and dynamic panel models, this study indicated an inverted U-shaped relationship among the development of Industry 4.0 and carbon emission management. Industries move to emitting more pollution to provide their required needs to all but once technologies advance, drastic decreases in combustion and emissions take place as the industries move more towards conservation and the integration of information continues to improve. This study investigates the non-linear impact of Industry 4.0 on carbon emissions in China’s logistics sector. Utilizing panel data from 30 Chinese provinces between 2011 and 2019, the research employs a dynamic panel model to quantify the relationship between Industry 4.0 adoption and carbon emissions. The findings reveal an inverted U-shaped relationship, with emissions initially increasing by 10% at lower levels of technology adoption before decreasing by 15% as the Industry 4.0 index reached higher levels. This study provides empirical evidence supporting the strategic deployment of Industry 4.0 technologies to achieve sustainable logistics growth. Key policy implications and future research directions are discussed.