How does e-commerce development affect county-level CO₂ emissions: New evidence from 2,142 counties in China.

Area of Science:

• Environmental Economics
• Digital Economy
• Sustainable Development

Background:

• Conflicting research exists on e-commerce's impact on CO2 emissions.
• China's county-level e-commerce pilot program offers novel insights.
• Rural e-commerce development is a key focus for sustainable growth.

Purpose of the Study:

• To investigate the effect of China's rural e-commerce development on CO2 emissions.
• To analyze the mechanisms through which e-commerce influences carbon reduction.
• To assess the differential impact of e-commerce on CO2 emissions across regions.

Main Methods:

• Utilized panel data from 2142 Chinese counties (2010-2021).
• Employed a staggered Difference-in-Differences (DiD) model.
• Incorporated a selection variable for the Rural E-commerce Demonstration Counties (REDC) pilot program.

Main Results:

• The REDC pilot program significantly reduced county-level CO2 emissions.
• E-commerce development promoted GDP growth and industrial servitization.
• Carbon reduction was more pronounced in economically developed areas, e-commerce-ready provinces, and regions with better mobility.

Conclusions:

• Rural e-commerce development can be a tool for significant carbon emission reduction.
• Digital transformation and industrial servitization are key channels for this reduction.
• Findings offer policy implications for sustainable development in developing countries.