Research on the impact of digital technology application in industry on industrial carbon dioxide emissions: Evidence from China

The application of digital technology (ADT) has become an inherent requirement for traditional industrial digitization transformation, and it provides a crucial driving force for reducing carbon dioxide (CO2) emissions in China’s industry. This study examines the impact of digital technology application in industry on industrial CO2 emissions, from both theoretical and empirical perspectives. Firstly, the model of endogenous economic growth with digital elements was extended, and it was found that the greater the degree of ADT in industry, the more it reduces CO2 emissions in equilibrium. Secondly, the study utilized panel data from 2011 to 2021, and the conclusions of the theoretical model were validated using a two-way fixed effects model, along with robustness and endogeneity tests. Thirdly, it was confirmed that public environmental concern acts as a moderator variable, enhancing the process of reducing industrial CO2 emissions through ADT. Lastly, the marginal effect of ADT on reducing industrial CO2 emissions initially increases and then decreases. At the 50th percentile level, the absolute value of the coefficient is the largest, indicating that at this point, ADT has the greatest marginal effect on reducing industrial CO2 emissions. Additionally, heterogeneous results show that ADT in less developed industrial regions has a stronger impact on carbon emission reduction compared to its application in more developed industrial regions.