How does digital government affect carbon intensity at the global level? New perspective of resource allocation optimization

In the current wave of digitization, digital government (DG) has emerged as a pivotal force in modernizing global governance and achieving the "double carbon" goal. This study, utilizing panel data spanning 186 countries from 2003 to 2020, empirically assesses the net effect of DG on carbon intensity (CI) as well as delves into the underlying mechanisms. DG is found to significantly reduce CI, a result that holds after endogeneity and robustness testing. Heterogeneity analysis reveals that among the components of DG, the telecommunication infrastructure construction and human capital are identified as the primary drivers of its carbon reduction role. Moreover, the carbon reduction effect is particularly significant in coal-rich countries, and non-OECD countries. Furthermore, mediation mechanism analysis indicates that DG strongly promotes the rationalization and efficiency of resource allocation, that is, enhancing government governance efficiency, reducing corruption, and increasing public environmental participation, thus in turn contributing to deal with the carbon emission dilemma. This study offers critical insights for emerging economies and countries worldwide in formulating carbon emission reduction policies within a digital framework, highlighting the importance of prioritizing public resources for low-carbon development to advance sustainable development.