Research on the spatial effect of digital economy development on urban carbon reduction

Cities are one of the main sources of regional carbon emissions, and reducing urban carbon emission is the key to reducing emissions. The digital economy has transformed the economic operation mode, and it is a significant approach to support the "dual carbon goals" (carbon peaking and carbon neutrality). This article considers the externalities of the digital economy and carbon emissions. And we use spatial econometric models to analyze the effectiveness of digital economy in empowering carbon emissions reduction. Besides, we explore the static and dynamic spillover effects, and use spatial Durbin panel quantile model to analyze the digital economy's heterogeneity on carbon emissions. Research has shown that the digital economy has a remarkable carbon reduction effect, and the conclusion remains valid after considering robustness tests such as replacing the weight matrices, calculation methods, and proxy variables. The analysis of static and dynamic spillover effects indicates that the degree of the digital economy's impact on carbon emissions are significantly different. Heterogeneity analysis shows that as the digital economy develops from a low level to a high level, its impact on carbon emissions also shifts from positive promotion to negative suppression. This paper proposes a policy reference to help the development of digital economy and promote carbon neutrality in the face of severe environmental challenges.