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Moving towards Environmental Sustainability: Can Digital Economy Reduce Environmental Degradation in China?

Author

Listed:
  • Shunbin Zhong

    (School of Business, Minnan Normal University, Zhangzhou 363000, China
    These authors contributed equally to this work.)

  • Huafu Shen

    (School of Business, Minnan Normal University, Zhangzhou 363000, China
    These authors contributed equally to this work.)

  • Ziheng Niu

    (Academy of Strategies for Innovation and Development, Anhui University, Hefei 230039, China)

  • Yang Yu

    (School of Economics, Hainan University, Haikou 570228, China)

  • Lin Pan

    (College of Oceanic and Atmospheric Sciences, Ocean University of China, Qingdao 266100, China)

  • Yaojun Fan

    (Chinese International College, Dhurakij Pundit University, Bangkok 10210, Thailand)

  • Atif Jahanger

    (School of Economics, Hainan University, Haikou 570228, China)

Abstract

In the context of environmental sustainability and accelerated digital technology development, China attaches great importance to the prominent role of digital economy in addressing environmental degradation. Utilizing Chinese provincial panel data from 2011 to 2019, this study investigates whether the digital economy can improve China’s environmental sustainability proxy by reducing carbon emission intensity. Based on the fixed effects model, the findings reveal that the digital economy has a significant negative effect on carbon emission intensity and the conclusion remains robust after conducting several robustness checks. However, this impact shows regional heterogeneity, which is more effective in resource-based eastern regions and the Belt and Road provinces. Moreover, mediating effect analyses indicate that the transmission mechanisms are energy consumption structure, total factor energy productivity, and green technology innovation. Furthermore, the results based on the spatial Durbin model (SDM) demonstrate that digital economy development has a significant spatial spillover effect. Finally, on the basis of results analysis and discussion, policy recommendations are provided for achieving environmental sustainability.

Suggested Citation

  • Shunbin Zhong & Huafu Shen & Ziheng Niu & Yang Yu & Lin Pan & Yaojun Fan & Atif Jahanger, 2022. "Moving towards Environmental Sustainability: Can Digital Economy Reduce Environmental Degradation in China?," IJERPH, MDPI, vol. 19(23), pages 1-23, November.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:23:p:15540-:d:981862
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