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Can the Digital Economy Enable Carbon Emission Reduction: Analysis of Mechanisms and China’s Experience

Author

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  • Congqi Wang

    (School of Management, Universiti Sains Malaysia, George Town 11800, Malaysia)

  • Rui Zhang

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Haslindar Ibrahim

    (School of Management, Universiti Sains Malaysia, George Town 11800, Malaysia)

  • Pengzhen Liu

    (School of Economics, Jinan University, Guangzhou 510632, China)

Abstract

With the continuous advancement of global scientific and technological capabilities, the issue of global warming caused by greenhouse gas emissions has received widespread attention from countries worldwide. Promoting carbon reduction and curbing the trend of global warming have become urgent and significant challenges for China and the world. Therefore, it is of great practical significance to explore the impact and mechanism of the digital economy on carbon reduction. This paper empirically analyzes the impact and means of the digital economy on carbon emissions using panel regression models and mediation effect models. The research indicates that the digital economy significantly impacts carbon emissions, and the following main conclusions are drawn: (1) The influence of the digital economy on carbon intensity exhibits an inverted U-shaped curve, starting with promotion and then inhibition. (2) The digital economy can affect carbon emissions through industrial structural upgrading and technological innovation. (3) Regions with a relatively high level of digital economy development also tend to have higher energy utilization efficiency, leading to a more pronounced impact of the digital economy on carbon emissions levels.

Suggested Citation

  • Congqi Wang & Rui Zhang & Haslindar Ibrahim & Pengzhen Liu, 2023. "Can the Digital Economy Enable Carbon Emission Reduction: Analysis of Mechanisms and China’s Experience," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:10368-:d:1184105
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    References listed on IDEAS

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