Can digital economy development contribute to carbon emission reduction? Evidence from China

With the rapid growth of the digital economy, it is essential to understand its impact on carbon emissions reduction. This study uses provincial panel data from China during 2011-2019 to construct a moderating mediating effect model and a spatial panel Durbin model to examine the relationship between the digital economy and carbon emissions reduction. This study analyzes the mediating effect of the energy structure on the digital economy's impact on carbon emission reduction, and the spatial effect and regional heterogeneity of the digital economy's impact on carbon emission reduction. The findings indicate that the development of the digital economy can effectively promote regional carbon emission reductions, both directly and indirectly, with a significant spatial spillover effect. Second, the energy structure plays a significant mediating role in promoting carbon emission reduction in the digital economy, and the industrial structure has a positive moderating effect. Third, the impact of the digital economy on carbon emissions reduction has significant regional heterogeneity, and the inhibitory effect of the digital economy is more effective in the central and western provinces. This study provides a theoretical reference for achieving high-quality development of the digital economy while promoting carbon emissions reduction.