Has the Digital Economy Reduced Carbon Emissions?: Analysis Based on Panel Data of 278 Cities in China

China is undergoing an urbanization process at an unprecedented scale, and low-carbon urban development is of great significance to the completion of the dual carbon goals. At the same time, the digital economy has become an important engine for urban development, and its role in environmental improvement has become increasingly prominent. While the digital economy is booming, can it promote the low-carbon development of cities? Based on the panel data of 278 cities in China from 2011 to 2019, this paper discusses the impact of the digital economy on carbon emissions and the long-term development trend between the digital economy and carbon emissions, the impact of differences in the development level of the digital economy on carbon emissions reduction, and the impact of green energy efficiency in the relationship between the digital economy and carbon emissions. The results show that the digital economy has a significant inhibitory effect on carbon emissions, and with the development of the digital economy, more and more cities show an absolute decoupling of the digital economy and carbon emissions and are turning to low-carbon development. The development level of the digital economy has a heterogeneous impact on carbon emissions. With the improvement of the development level of the digital economy, the effect on emission reduction is more significant. As a threshold variable, green energy efficiency affects the relationship between digital economy and carbon emissions. When green energy efficiency is low, the digital economy promotes carbon emissions, and when green energy efficiency is high, the digital economy reduces carbon emissions.

Automated summary

China is currently undergoing a significant urbanization process, with low-carbon urban development being crucial for achieving the dual carbon goals. The digital economy has emerged as a key driver for urban development, playing a growing role in environmental improvement. Through an analysis of panel data from 278 cities in China between 2011 and 2019, it is shown that the digital economy has a substantial inhibitory effect on carbon emissions, leading to more cities achieving a decoupling of digital economy growth and carbon emissions, towards a path of low-carbon development. Additionally, the level of digital economy development has a varied impact on carbon emissions, with higher levels of development showing more significant reduction effects. The efficiency of green energy also plays a pivotal role in determining whether the digital economy promotes or reduces carbon emissions.