The digital revolution's environmental paradox: Exploring the synergistic effects of pollution and carbon reduction via industrial metamorphosis and displacement

Faced with the dual challenges of “achieving carbon peaking by 2030 and carbon neutrality by 2060” and “continuing the battle against pollution,” the concept of synergistic reduction of pollution and carbon (SRPC) has emerged as a novel approach for China to tackle climate change and achieve comprehensive ecological improvement. In terms of the increasingly profound influence of the digital economy (DE) on China's economy and society, what impact will DE have on the SRPC? This is a realistic issue worth in-depth discussion. Using the super efficiency SBM model and the coupling coordination degree model (CCDM) to measure the SRPC level in 278 Chinese cities from 2007 to 2019, the influence of DE on the SRPC is investigated from the perspectives of industrial transformation and upgrading (ITU) and the transfer of polluting industry (TPI). The results show that, first, the SRPC in most Chinese regions showed a gradual upwards trend. Second, DE can effectively improve the local SRPC. The improvement is achieved through local ITU (especially industrial upgrading and industrial rationalization). Third, DE notably reduces the SRPC level in neighboring regions. The negative spillover effect has an inverted U-shaped change, and 300 km is the turning point. Spatial mechanism analysis shows that local DE inhibits the SRPC in neighboring regions through the spatial transfer of polluting industries. This study not only helps to assess the effect of DE development on the SRPC but is also highly important for determining how to effectively promote the interregional ITU to realize the SRPC.