Digital economy and environmental co-benefits: Evidence on air pollution and carbon emissions in China

Many developing countries still face severe environmental pollution. Although the existing literature has explored the environmental implications of the digital economy (DE), a systematic investigation of its potential environmental co-benefits for mitigating air pollution and reducing carbon emissions remains insufficient. Drawing on data from Chinese cities spanning 2014 to 2022, empirical results demonstrate that the DE functions as a critical driver for controlling air pollutants and carbon emissions by promoting the expansion of the sharing economy, improving resource allocation efficiency, and elevating public environmental awareness. Moreover, the effect is significantly shaped by environmental regulatory policies, innovative capacity, and low-carbon pilot initiatives. Structural and coupling coordination analyses suggest that this effect is particularly pronounced in urban areas with high levels of pollution. Furthermore, the DE strengthens the synergistic effects of pollutant reduction and carbon mitigation. Overall, this study provides a comprehensive assessment of the environmental co-benefits of the DE on pollution and carbon reduction, underscoring the importance of advancing urban digitalization and promoting integrated pollution governance.