Study on how the digital economy affects urban carbon emissions

Abstract

The digital economy is crucial in advancing an economically sustainable and low-carbon future and plays a key role in achieving carbon neutrality and carbon peaking. We measured the digital economy development level of each prefecture-level city in China form 2011to 2019, then investigated the impact of on carbon emissions and its mechanism using the panel fixed effects model and the spatial Durbin model. Our results indicated that: Firstly, an inverted U-shaped relationship had been observed between the impact of digital economy on carbon emissions, which increased and then decreased, and this result was again verified by a threshold regression. Secondly, there was a nonlinear relationship between digital economy and green innovation and the digital economy had an indirect effect on carbon emissions through green innovation. Thirdly, the influence of digital economy on carbon emissions in the area followed an inverted U-shaped relationship that stimulated initially and then restrained, with spatial spillover effects. Fourth, the heterogeneity analysis found that digital economy had a greater emission reduction effect in areas east of the "Hu Huanyong line" and in in cities without resources. The conclusions provide new highlights on the relationship between digital economy and carbon emissions, along with policy recommendations for attaining the objectives of peak carbon and carbon-neutral strategies.