IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v57y2026i1ne70114.html

As Climate Risks Intensify: How Do Key Digital Technologies Promote Pollution Reduction and Carbon Mitigation? Evidence From China

Author

Listed:
  • Shengling Zhang
  • Ruibing Ji
  • Wei Dou
  • Yu Hao

Abstract

Key digital technology (KDT) serves as a critical technological foundation for advancing pollution reduction and carbon mitigation (PRCM), while increasingly reshaping regional environmental governance capacity. However, the institutional fluctuations and governance uncertainties induced by intensifying climate risks have introduced both challenges and opportunities for the environmental effectiveness of KDT. Drawing on panel data from 276 prefecture‐level cities in China between 2011 and 2021, this study investigates the impact of KDT on PRCM synergy across heterogeneous regional contexts. The findings reveal that KDT significantly enhances the degree of PRCM synergy, highlighting its dual environmental benefits. Moreover, climate risks play differentiated moderating roles in this process. Specifically, climate transition risks amplify the PRCM effect of KDT, reflecting the greater marginal adaptability of technological governance under institutional risk scenarios. In contrast, the overall moderating role of climate physical risks is limited. Heterogeneity analysis suggests that under transition risks, KDT possesses compensatory capacities to address institutional uncertainty, whereas under physical risks, its effectiveness is conditioned by regional structural characteristics and governance capacity. Mechanism analysis further demonstrates that KDT influences PRCM synergy through a chain pathway encompassing “source prevention–process control–end‐stage blocking.” Spatial effect analysis indicates a siphon effect of KDT, with significant negative spillovers on the PRCM synergy of adjacent regions, implying the risk of widening inter‐regional disparities in environmental governance outcomes.

Suggested Citation

  • Shengling Zhang & Ruibing Ji & Wei Dou & Yu Hao, 2026. "As Climate Risks Intensify: How Do Key Digital Technologies Promote Pollution Reduction and Carbon Mitigation? Evidence From China," Growth and Change, Wiley Blackwell, vol. 57(1), March.
  • Handle: RePEc:bla:growch:v:57:y:2026:i:1:n:e70114
    DOI: 10.1111/grow.70114
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/grow.70114
    Download Restriction: no

    File URL: https://libkey.io/10.1111/grow.70114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shahbaz, Muhammad & Gao, Changyuan & Zhai, LiLi & Shahzad, Fakhar & Khan, Imran, 2021. "Environmental air pollution management system: Predicting user adoption behavior of big data analytics," Technology in Society, Elsevier, vol. 64(C).
    2. Yewen Wang & Jiaxuan Tang & Cheng Li, 2025. "How does digital transformation affect corporate resilience: a moderation perspective study," Applied Economics, Taylor & Francis Journals, vol. 57(2), pages 121-134, January.
    3. Bent Erik Bakken, 2019. "Energy transition dynamics: Does participatory modelling contribute to alignment among differing future world views?," Systems Research and Behavioral Science, Wiley Blackwell, vol. 36(2), pages 184-196, March.
    4. Yan, Yaxue & Zhang, Xiaoling & Zhang, Jihong & Li, Kai, 2020. "Emissions trading system (ETS) implementation and its collaborative governance effects on air pollution: The China story," Energy Policy, Elsevier, vol. 138(C).
    5. Nudurupati, Sai Sudhakar & Budhwar, Pawan & Pappu, Raja Phani & Chowdhury, Soumyadeb & Kondala, Mukesh & Chakraborty, Ayon & Ghosh, Sadhan Kumar, 2022. "Transforming sustainability of Indian small and medium-sized enterprises through circular economy adoption," Journal of Business Research, Elsevier, vol. 149(C), pages 250-269.
    6. Guanhua Yang & Beilei Liu, 2023. "RETRACTED ARTICLE: Research on the impact of managers’ green environmental awareness and strategic intelligence on corporate green product innovation strategic performance," Annals of Operations Research, Springer, vol. 326(1), pages 5-5, July.
    7. Zhou, Yong & Yang, Qijin & Lu, Shuo, 2023. "Research on the identification and formation mechanism of the main path of digital technology diffusion: Empirical evidence from China," Technology in Society, Elsevier, vol. 75(C).
    8. Zeng, Qing-Hua & He, Ling-Yun, 2023. "Study on the synergistic effect of air pollution prevention and carbon emission reduction in the context of "dual carbon": Evidence from China's transport sector," Energy Policy, Elsevier, vol. 173(C).
    9. Conceição Castro & Cristina Lopes, 2022. "Digital Government and Sustainable Development," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 880-903, June.
    10. Cai, Hechang & Wang, Zilong & Ji, Yi & Xu, Liuyang, 2024. "Digitalization and innovation: How does the digital economy drive technology transfer in China?," Economic Modelling, Elsevier, vol. 136(C).
    11. Giovanna Bua & Daniel Kapp & Federico Ramella & Lavinia Rognone, 2024. "Transition versus physical climate risk pricing in European financial markets: a text-based approach," The European Journal of Finance, Taylor & Francis Journals, vol. 30(17), pages 2076-2110, November.
    12. Guo, Mengmeng & Wang, Huixin & Kuai, Yicheng, 2023. "Environmental regulation and green innovation: Evidence from heavily polluting firms in China," Finance Research Letters, Elsevier, vol. 53(C).
    13. Qiao, Yi & Li, Xiaorong & Hu, Juncheng, 2025. "From digital to innovative: How does digital transformation affect corporate innovation?," Economics Letters, Elsevier, vol. 247(C).
    14. Chen, Jiandong & Fan, Wei & Li, Ding & Liu, Xin & Song, Malin, 2020. "Driving factors of global carbon footprint pressure: Based on vegetation carbon sequestration," Applied Energy, Elsevier, vol. 267(C).
    15. Zhao, Xiaomeng & Liu, Chuanjiang & Sun, Chuanwang & Yang, Mian, 2020. "Does stringent environmental regulation lead to a carbon haven effect? Evidence from carbon-intensive industries in China," Energy Economics, Elsevier, vol. 86(C).
    16. Heiner Lüpke & Lucas Leopold & Jale Tosun, 2023. "Institutional coordination arrangements as elements of policy design spaces: insights from climate policy," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(1), pages 49-68, March.
    17. Jie Li & Ning Ding & Sambock Bock Park & Zhu Zhang, 2025. "How Does Digital Transformation Impact ESG Performance in Uncertain Environments?," Sustainability, MDPI, vol. 17(10), pages 1-30, May.
    18. Che, Shuai & Wang, Jun, 2022. "Can environmental regulation solve the carbon curse of natural resource dependence: Evidence from China," Resources Policy, Elsevier, vol. 79(C).
    19. Wang, Lei & Chen, Yangyang & Ramsey, Thomas Stephen & Hewings, Geoffrey J.D., 2021. "Will researching digital technology really empower green development?," Technology in Society, Elsevier, vol. 66(C).
    20. Dutta, Anupam & Bouri, Elie & Rothovius, Timo & Uddin, Gazi Salah, 2023. "Climate risk and green investments: New evidence," Energy, Elsevier, vol. 265(C).
    21. Wang, Yunsong & Jiang, Aiqing & Zhang, Songlin & Chen, Weihong, 2024. "Traditional finance, digital finance, and financial efficiency: An empirical analysis based on 19 urban agglomerations in China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    22. Zhou, Yiyi & Wang, Wei & Liu, Yunqiang, 2025. "How does digital transformation drive green innovation in agricultural supply chains?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 217(C).
    23. Hao, Xiaoli & Miao, Erxiang & Sun, Qingyu & Li, Ke & Wen, Shufang & Wu, Haitao, 2025. "When climate policy's up in the air: How digital technology impacts corporate energy intensity," Energy Economics, Elsevier, vol. 144(C).
    24. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).
    25. Wang, Zongrun & Fu, Haiqin & Ren, Xiaohang & Gozgor, Giray, 2024. "Exploring the carbon emission reduction effects of corporate climate risk disclosure: Empirical evidence based on Chinese A-share listed enterprises," International Review of Financial Analysis, Elsevier, vol. 92(C).
    26. Alam, Md. Mahmudul & Murad, Md. Wahid, 2020. "The impacts of economic growth, trade openness and technological progress on renewable energy use in organization for economic co-operation and development countries," Renewable Energy, Elsevier, vol. 145(C), pages 382-390.
    27. Zou, Ran & Yang, Jun & Feng, Chao, 2023. "Does informatization alleviate energy poverty? A global perspective," Energy Economics, Elsevier, vol. 126(C).
    28. Wang, Bin & Yu, Minxiu & Zhu, Yucheng & Bao, Pinjuan, 2021. "Unveiling the driving factors of carbon emissions from industrial resource allocation in China: A spatial econometric perspective," Energy Policy, Elsevier, vol. 158(C).
    29. Zhu, Junpeng & Wu, Shaohui & Xu, Junbing, 2023. "Synergy between pollution control and carbon reduction: China's evidence," Energy Economics, Elsevier, vol. 119(C).
    30. Sun, Kaili & Wang, Haohan & Ye, Shengchao, 2025. "How does digital transformation enhance industrial chain resilience? Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    31. Bryan Kelly & Dimitris Papanikolaou & Amit Seru & Matt Taddy, 2021. "Measuring Technological Innovation over the Long Run," American Economic Review: Insights, American Economic Association, vol. 3(3), pages 303-320, September.
    32. Jiyuan Zhang & Xingquan Yang & Lei Wang, 2025. "How does digital transformation affect enterprise diversification?," Applied Economics, Taylor & Francis Journals, vol. 57(28), pages 3948-3963, June.
    33. Xu Xu & Alison Watts & Markum Reed, 2019. "Does access to internet promote innovation? A look at the U.S. broadband industry," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1423-1440, December.
    34. Guo, Panting & Bi, Jiefeng & Zhu, Mengnan, 2025. "Enterprise digital transformation and investment efficiency: Empirical evidence from listed enterprises in China," Journal of Asian Economics, Elsevier, vol. 97(C).
    35. Rong, Xueyun & Chen, Haixin & Liu, Shuhao, 2024. "Nonlinear impact of climate risks on renewable energy stocks in China: A moderating effects study," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    36. Wang, Jiangquan & Ma, Xiaowei & Zhang, Jun & Zhao, Xin, 2022. "Impacts of digital technology on energy sustainability: China case study," Applied Energy, Elsevier, vol. 323(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Weike & Fan, Hongxia & Zhao, Qiwei, 2023. "Seeing green: How does digital infrastructure affect carbon emission intensity?," Energy Economics, Elsevier, vol. 127(PB).
    2. Fan, Liwei & Sun, Yuan & Wu, Tung-Ju, 2025. "Is climate policy uncertainty an angel or a devil? Empirical evidence from corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 103(C).
    3. Yang, Senmiao & Wang, Jianda & Dong, Kangyin & Jiang, Qingzhe, 2023. "A path towards China's energy justice: How does digital technology innovation bring about a just revolution?," Energy Economics, Elsevier, vol. 127(PA).
    4. Hou, Mengyang & Xie, Yalin & Lu, Weinan & Cui, Xuehua & Xi, Zenglei & Han, Yuxin, 2025. "Green finance drives the synergy of pollution control and carbon reduction in China: Dual perspective of effect and efficiency," Energy, Elsevier, vol. 330(C).
    5. Liu, Shimeng & Xiong, Xiong & Gao, Ya, 2025. "Market-based environmental regulations and green innovation: Evidence from the pilot carbon markets in China," Research in International Business and Finance, Elsevier, vol. 77(PA).
    6. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Inclusive Economic Growth: Relationship between Energy and Governance Efficiency," Energies, MDPI, vol. 16(6), pages 1-16, March.
    7. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    8. Zhang, Shengling & Wang, Yao & Hao, Yu & Liu, Zhiwei, 2021. "Shooting two hawks with one arrow: Could China's emission trading scheme promote green development efficiency and regional carbon equality?," Energy Economics, Elsevier, vol. 101(C).
    9. Wang, Bo & Wang, Jianda, 2025. "China’s green digital era: How does digital economy enable green economic growth?," Innovation and Green Development, Elsevier, vol. 4(1).
    10. Fang, Xia & Zhang, Yun & Lv, Shuqing & Tan, Longxin, 2025. "Does digital finance spatial correlation drive income convergence?," Economic Modelling, Elsevier, vol. 153(C).
    11. Zhang, Qiming & Zhao, Xuan, 2024. "Can the digital economy facilitate the optimization of industrial structure in resource-based cities?," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 405-416.
    12. Cui, Jinxin & Maghyereh, Aktham, 2025. "Examining perceived spillovers among climate risk, fossil fuel, renewable energy, and carbon markets: A higher-order moment and quantile analysis," Journal of Commodity Markets, Elsevier, vol. 38(C).
    13. Hao, Xiaoli & Li, Ke & Ren, Siyu & Sun, Qingyu & Hu, Weitao & Xue, Yan, 2024. "How green investment significantly relieves resource curse? A new perspective from fiscal decentralization," Resources Policy, Elsevier, vol. 94(C).
    14. Yang, Senmiao & Jiang, Wanxin & Wang, Jianda, 2025. "How does ICT agglomeration promote green technology innovation? Evidence from Yangtze River Delta in China," Energy Economics, Elsevier, vol. 147(C).
    15. Guo, Bingnan & Hu, Peiji & Lin, Ji, 2024. "The effect of digital infrastructure development on enterprise green transformation," International Review of Financial Analysis, Elsevier, vol. 92(C).
    16. Jingxue Zhang & Chuan Cheng & Yanchao Feng, 2024. "The heterogeneous drivers of CO2 emissions in China’s two major economic belts: new evidence from spatio-temporal analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(4), pages 10653-10679, April.
    17. Liao, Kaicheng & Liu, Juan, 2024. "Digital infrastructure empowerment and urban carbon emissions: Evidence from China," Telecommunications Policy, Elsevier, vol. 48(6).
    18. Yan, Ying & Lin, Tao & Ma, Heng, 2025. "The impact of corporate climate risk on carbon intensity: Evidence from China," Energy, Elsevier, vol. 334(C).
    19. Siliang Guo, 2023. "Can digitalization and low-carbonization progress in harmony? Evidence from Chinese cities," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-26, October.
    20. He, Ling-Yun & Chen, Kun-Xian, 2023. "Does China's regional emission trading scheme lead to carbon leakage? Evidence from conglomerates," Energy Policy, Elsevier, vol. 175(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:57:y:2026:i:1:n:e70114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.