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A Simulation Study on the Impact of the Digital Economy on CO 2 Emission Based on the System Dynamics Model

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  • Zhenzhen Liao

    (School of Economics & Management, Northwest University, Xi’an 710127, China)

  • Shaofeng Ru

    (School of Economics & Management, Northwest University, Xi’an 710127, China
    The Western Economic Development Research Institute, Northwest University, Xi’an 710127, China)

  • Yiyang Cheng

    (School of Economics & Management, Northwest University, Xi’an 710127, China)

Abstract

The digital economy plays an important role in achieving the strategic goal of “carbon peaking and carbon neutrality” in China. In this study, we construct a system dynamics (SD) model to comprehensively analyze the impact of the digital economy on CO 2 emission. First, we simulate and forecast the future baseline of the digital economy, energy consumption, and CO 2 emission in China from 2005 to 2040. Second, we study the impact of the digital economy on CO 2 emission based on scenario analysis of different digital economy growth rates. Finally, we study the influencing factors of CO 2 emission reduction effect of the digital economy. The results indicate the following: (1) CO 2 emission will peak in 2034. From 2020 to 2025, the cumulative reduction in energy consumption intensity will be 15.75% and the cumulative reduction in CO 2 emission intensity will be 20.9%. Both indicators will reach the national goals during the 14th Five-Year Plan period. However, it will require more effort to realize the goal of the share of non-fossil energy. (2) There is an inverted U-shaped relationship between the digital economy and CO 2 emission. The digital economy aggravates CO 2 emission mainly by promoting energy consumption, but it reduces CO 2 emission by promoting the upgrading of the energy consumption structure and reducing the energy consumption intensity. (3) The R&D investment intensity and the environment investment intensity can strengthen the CO 2 emission reduction effect of the digital economy. The results will be crucial for carbon reduction and provide policymakers with suggestions for sustainability.

Suggested Citation

  • Zhenzhen Liao & Shaofeng Ru & Yiyang Cheng, 2023. "A Simulation Study on the Impact of the Digital Economy on CO 2 Emission Based on the System Dynamics Model," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3368-:d:1066220
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    1. Ruiheng Xu & Kaiwen Ji & Zichen Yuan & Chenye Wang & Yihan Xia, 2024. "Exploring the Evolution Trend of China’s Digital Carbon Footprint: A Simulation Based on System Dynamics Approach," Sustainability, MDPI, vol. 16(10), pages 1-27, May.

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