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Digital–real economy integration and urban low-carbon development in China

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  • Xu, Zhenhua
  • Xu, Wenhao
  • Xin, Daleng

Abstract

Digital–real economy integration (DRI) is a fundamental prerequisite for cultivating enhanced productivity. Furthermore, it represents an efficacious strategy for expediting the attainment of China's carbon peak and neutrality objectives. This study empirically examines the impact, mechanisms, and spatial effects of DRI on urban low-carbon development (ULCD) by the two-way fixed effect model and the Spatial Durbin Model (SDM), using data from 285 Chinese cities from 2011 to 2021. The results show that: (1) DRI has a remarkable promotional effect on ULCD, and it can considerably improve low-carbon production, living, and ecology. (2) DRI primarily promotes ULCD by improving technological innovation, resource allocation, and industrial agglomeration. (3) The positive driving force of DRI on ULCD is more significant in cities that are central, coastal, nonold-industrial, nonenvironmental, and nonresource-based cities. (4) DRI and ULCD exhibit a strong spatial correlation, and DRI has a negative spatial spillover effect on neighboring regions’ ULCD. This study provides insights for a systematic understanding of DRI and ULCD, with policy implications for promoting cities’ digitalization and low-carbon development.

Suggested Citation

  • Xu, Zhenhua & Xu, Wenhao & Xin, Daleng, 2025. "Digital–real economy integration and urban low-carbon development in China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 606-621.
    • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:606-621
    DOI: 10.1016/j.eap.2025.03.043
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