Assessing e-commerce impacts on China's CO₂ emissions: testing the CKC hypothesis.

Area of Science:

• Environmental Economics
• Econometrics
• Sustainable Development

Background:

• The impact of e-commerce on carbon emissions is debated, with mixed conclusions in existing literature.
• Previous research has not extensively focused on the e-commerce sector's specific role in carbon emission dynamics.
• A regional perspective is crucial for understanding the Carbon Kuznets Curve (CKC) in relation to e-commerce.

Purpose of the Study:

• To investigate the relationship between e-commerce and carbon dioxide (CO2) emissions using the Carbon Kuznets Curve (CKC) hypothesis.
• To analyze this relationship from a macro-economic perspective across different Chinese regions.
• To provide empirical evidence for informing e-commerce regulations aimed at reducing carbon emissions.

Main Methods:

• Utilized panel data from Chinese cities (2001-2017) to explore the CKC hypothesis.
• Employed unit root tests (LLC, IPS, Fisher-ADF, Fisher-PP, CADF, CIPS) and cointegration tests (Pedroni, Kao, Westerlund).
• Applied Dynamic Ordinary Least Squares (DOLS) to estimate the econometric relationship, distinguishing primary and secondary energy-related emissions.

Main Results:

• The CKC hypothesis, showing an inverted "U" shape, is supported for China, Eastern China, and Western China.
• A cubic-form CKC, exhibiting an "N" shape, is supported for Central China.
• Increased trade openness was found to decrease carbon emissions, while foreign direct investment (FDI) and market size contributed to higher emissions.

Conclusions:

• E-commerce development exhibits varying impacts on carbon emissions across different Chinese regions, necessitating tailored regulatory approaches.
• The study supports the CKC hypothesis in different forms (inverted "U" and "N" shapes) depending on the region.
• Findings offer critical insights for developing targeted regional and national e-commerce policies to mitigate CO2 emissions effectively.