Inverted U-shape Impact of China's Manufacturing Digitization on Low-carbon Environmental Governance Performance

Too much of a good thing can ultimately become detrimental. Is this the case in the manufacturing industry´s carbon governance under the guise of digitization? This study examines the non-linear effect of low-carbon environmental governance at the provincial level in China´s manufacturing sector which is the first of its kind. Using the slacks-based measure data envelopment approach (SBM-DEA), this study assesses changes in environmental governance performance over time, accounting for desirable and undesirable outputs. The findings indicate an inverted U-shaped relationship between manufacturing digitization and low-carbon environmental governance performance in China. This suggests that digitization improves environmental outcomes initially, but excessive digitization causes adverse environmental impacts due to increased energy use, resource depletion and waste production. It offers insights into the complicated interplay of benefits and challenges in manufacturing digitization and its implications for achieving sustainable, low-carbon development in China. It highlights the importance of thoughtful digital transition to support low-carbon development goals.