Can digital economy development contribute to urban carbon emission reduction? - Empirical evidence from China

In the context of global digitalization, fostering the expansion of the digital economy holds immense importance in promoting energy efficiency and reducing emissions. Utilizing a sample of 281 prefecture-level cities in China from 2003 to 2019, this research analyzes the impact of the digital economy on urban carbon emissions in China. This study employs various methods, including principal component analysis, fixed-impact model, and mediating effect model. Based on the research findings, the development of the digital economy has the potential to significantly reduce carbon emissions in metropolitan areas. Moreover, these effects are especially noticeable in cities located to the east of the Hu Huanyong Line. These cities are characterized by limited reliance on resources and a high level of marketization. Further research reveals that promoting technical innovation and modernizing industrial structures can reduce the intensity of carbon emissions in metropolitan areas. This study provides empirical evidence supporting the effective reduction of carbon emissions in developing countries during the evolution of the digital economy. It acts as a crucial cornerstone for guiding policies and executing strategies aimed at fostering top-tier economic development in the future. The findings of this study confirm the inhibitory effect of the digital economy on urban carbon emission intensity. However, this study has limitations in data samples, research scope, and depth of mechanism analysis, which prevent a full exploration of the spatial spillover effect of the digital economy and other factors. Therefore, the conclusions drawn in this study can only provide empirical evidence for identifying the relationship between the digital economy and carbon emission intensity to a certain extent. Future research should aim to expand on these aspects.