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The effect of digital technology on residential and non-residential carbon emission

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  • Pu, Zhengning
  • Liu, Jingyu
  • Yang, Mingyan

Abstract

This paper provides a comprehensive examination of the effects of digital technology on residential and non-residential CO2 emissions in 277 Chinese cities from 2010 to 2019. The study estimates energy-based carbon emissions (calculated by bottom-up approach) and net carbon emissions (calculated by top-down approach) simultaneously, offering a holistic view. Mediating, moderation, and threshold regression models are employed to uncover the influencing mechanisms. The findings, which have practical implications, reveal that digital technology has a dual effect: it promotes residential CO2 emissions but inhibits non-residential CO2 emissions. This effect is consistent for both energy-based and net carbon emissions. The overall correlation with energy-based carbon emissions is negative, while the relationship between digital technology and total net CO2 emissions is weakly positive. Specifically, digital technology intensifies residential CO2 emissions by influencing individuals’ behaviors such as consumption, employment, and education. It also indirectly affects non-residential CO2 emissions by promoting economic growth, influencing economic structure, and promoting foreign investment. In detail, the study verifies the inverted U-shape relationship between economic growth and carbon emission and the pollution halo hypothesis. This study not only contributes to calculating an innovative digital technology index (DTI) and net CO2 emissions but also inspires policy suggestions for technology development and environmental regulation through mechanism analysis.

Suggested Citation

  • Pu, Zhengning & Liu, Jingyu & Yang, Mingyan, 2024. "The effect of digital technology on residential and non-residential carbon emission," International Review of Economics & Finance, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024004878
    DOI: 10.1016/j.iref.2024.103495
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