IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v141y2025ics0140988324008302.html
   My bibliography  Save this article

Research on the impact of digital technology application in industry on industrial carbon dioxide emissions: Evidence from China

Author

Listed:
  • Liu, Jianjun
  • Liu, Mengting
  • Liang, Dapeng

Abstract

The application of digital technology (ADT) has become an inherent requirement for traditional industrial digitization transformation, and it provides a crucial driving force for reducing carbon dioxide (CO2) emissions in China’s industry. This study examines the impact of digital technology application in industry on industrial CO2 emissions, from both theoretical and empirical perspectives. Firstly, the model of endogenous economic growth with digital elements was extended, and it was found that the greater the degree of ADT in industry, the more it reduces CO2 emissions in equilibrium. Secondly, the study utilized panel data from 2011 to 2021, and the conclusions of the theoretical model were validated using a two-way fixed effects model, along with robustness and endogeneity tests. Thirdly, it was confirmed that public environmental concern acts as a moderator variable, enhancing the process of reducing industrial CO2 emissions through ADT. Lastly, the marginal effect of ADT on reducing industrial CO2 emissions initially increases and then decreases. At the 50th percentile level, the absolute value of the coefficient is the largest, indicating that at this point, ADT has the greatest marginal effect on reducing industrial CO2 emissions. Additionally, heterogeneous results show that ADT in less developed industrial regions has a stronger impact on carbon emission reduction compared to its application in more developed industrial regions.

Suggested Citation

  • Liu, Jianjun & Liu, Mengting & Liang, Dapeng, 2025. "Research on the impact of digital technology application in industry on industrial carbon dioxide emissions: Evidence from China," Energy Economics, Elsevier, vol. 141(C).
  • Handle: RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324008302
    DOI: 10.1016/j.eneco.2024.108121
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324008302
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2024.108121?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Hua & Wheeler, David, 2005. "Financial incentives and endogenous enforcement in China's pollution levy system," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 174-196, January.
    2. Madaleno, Mara & Dogan, Eyup & Taskin, Dilvin, 2022. "A step forward on sustainability: The nexus of environmental responsibility, green technology, clean energy and green finance," Energy Economics, Elsevier, vol. 109(C).
    3. Liu, Jun & Liu, Liang & Qian, Yu & Song, Shunfeng, 2022. "The effect of artificial intelligence on carbon intensity: Evidence from China's industrial sector," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    4. Antonin Pottier & J.C Hourcade & E. Espagne, 2014. "Modelling the redirection of technical change: The pitfalls of incorporeal visions of the economy," Post-Print hal-01523021, HAL.
    5. Fang, Zhen, 2023. "Assessing the impact of renewable energy investment, green technology innovation, and industrialization on sustainable development: A case study of China," Renewable Energy, Elsevier, vol. 205(C), pages 772-782.
    6. Long, Ruyin & Shao, Tianxiang & Chen, Hong, 2016. "Spatial econometric analysis of China’s province-level industrial carbon productivity and its influencing factors," Applied Energy, Elsevier, vol. 166(C), pages 210-219.
    7. Jabbour, Charbel Jose Chiappetta & Jabbour, Ana Beatriz Lopes de Sousa & Sarkis, Joseph & Filho, Moacir Godinho, 2019. "Unlocking the circular economy through new business models based on large-scale data: An integrative framework and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 546-552.
    8. You, Jianmin & Zhang, Wei, 2022. "How heterogeneous technological progress promotes industrial structure upgrading and industrial carbon efficiency? Evidence from China's industries," Energy, Elsevier, vol. 247(C).
    9. Charles I. Jones & Christopher Tonetti, 2020. "Nonrivalry and the Economics of Data," American Economic Review, American Economic Association, vol. 110(9), pages 2819-2858, September.
    10. Hanafizadeh, Mohammad Reza & Saghaei, Abbas & Hanafizadeh, Payam, 2009. "An index for cross-country analysis of ICT infrastructure and access," Telecommunications Policy, Elsevier, vol. 33(7), pages 385-405, August.
    11. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    12. Keyong Zhang & Sulun Li & Peng Qin & Bohong Wang, 2022. "Spatial and Temporal Effects of Digital Technology Development on Carbon Emissions: Evidence from China," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    13. Z. Eylem Gevrek & Ayse Uyduranoglu, 2015. "Public Preferences for Carbon Tax Attributes," Working Paper Series of the Department of Economics, University of Konstanz 2015-15, Department of Economics, University of Konstanz.
    14. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    15. Gu, Yan & Ho, Kung-Cheng & Yan, Cheng & Gozgor, Giray, 2021. "Public environmental concern, CEO turnover, and green investment: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 100(C).
    16. Debabrata Ghosh & Janat Shah & Sanjeev Swami, 2020. "Product greening and pricing strategies of firms under green sensitive consumer demand and environmental regulations," Annals of Operations Research, Springer, vol. 290(1), pages 491-520, July.
    17. Mahmood, Tarique & Mubarik, Muhammad Shujaat, 2020. "Balancing innovation and exploitation in the fourth industrial revolution: Role of intellectual capital and technology absorptive capacity," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    18. Vélez-Henao, Johan-Andrés & Font Vivanco, David & Hernández-Riveros, Jesús-Antonio, 2019. "Technological change and the rebound effect in the STIRPAT model: A critical view," Energy Policy, Elsevier, vol. 129(C), pages 1372-1381.
    19. Su, Hsin-Ning & Moaniba, Igam M., 2017. "Does innovation respond to climate change? Empirical evidence from patents and greenhouse gas emissions," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 49-62.
    20. Liu, Jian & Yang, Qingshan & Ou, Suhua & Liu, Jie, 2022. "Factor decomposition and the decoupling effect of carbon emissions in China's manufacturing high-emission subsectors," Energy, Elsevier, vol. 248(C).
    21. Martínez-Caro, Eva & Cegarra-Navarro, Juan Gabriel & Alfonso-Ruiz, Francisco Javier, 2020. "Digital technologies and firm performance: The role of digital organisational culture," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    22. Zhao, Min & Tan, Lirong & Zhang, Weiguo & Ji, Minhe & Liu, Yuan & Yu, Lizhong, 2010. "Decomposing the influencing factors of industrial carbon emissions in Shanghai using the LMDI method," Energy, Elsevier, vol. 35(6), pages 2505-2510.
    23. Yi, Ming & Liu, Yafen & Sheng, Mingyue Selena & Wen, Le, 2022. "Effects of digital economy on carbon emission reduction: New evidence from China," Energy Policy, Elsevier, vol. 171(C).
    24. 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).
    25. Wang, Yuan & Zhang, Chen & Lu, Aitong & Li, Li & He, Yanmin & ToJo, Junji & Zhu, Xiaodong, 2017. "A disaggregated analysis of the environmental Kuznets curve for industrial CO2 emissions in China," Applied Energy, Elsevier, vol. 190(C), pages 172-180.
    26. Gouvea, Raul & Kapelianis, Dimitri & Kassicieh, Sul, 2018. "Assessing the nexus of sustainability and information & communications technology," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 39-44.
    27. Pottier, Antonin & Hourcade, Jean-Charles & Espagne, Etienne, 2014. "Modelling the redirection of technical change: The pitfalls of incorporeal visions of the economy," Energy Economics, Elsevier, vol. 42(C), pages 213-218.
    28. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    29. Liu, Yajun & Zhang, Xiuwu & Shen, Yang, 2024. "Technology-driven carbon reduction: Analyzing the impact of digital technology on China's carbon emission and its mechanism," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    30. Wang, Miao & Feng, Chao, 2018. "Using an extended logarithmic mean Divisia index approach to assess the roles of economic factors on industrial CO2 emissions of China," Energy Economics, Elsevier, vol. 76(C), pages 101-114.
    31. Ouyang, Xiaoling & Fang, Xingming & Cao, Yan & Sun, Chuanwang, 2020. "Factors behind CO2 emission reduction in Chinese heavy industries: Do environmental regulations matter?," Energy Policy, Elsevier, vol. 145(C).
    32. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    33. Büchi, Giacomo & Cugno, Monica & Castagnoli, Rebecca, 2020. "Smart factory performance and Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    34. repec:hal:journl:hal-01111105 is not listed on IDEAS
    35. Lehr, Jakob & Rehdanz, Katrin, 2024. "The effect of temperature on energy related CO2 emissions and economic performance in German industry," Energy Economics, Elsevier, vol. 138(C).
    36. 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).
    37. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    38. Zhao, Jun & Shahbaz, Muhammad & Dong, Xiucheng & Dong, Kangyin, 2021. "How does financial risk affect global CO2 emissions? The role of technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    39. Wen, Hong-xing & Chen, Zhe & Yang, Qian & Liu, Jin-yi & Nie, Pu-yan, 2022. "Driving forces and mitigating strategies of CO2 emissions in China: A decomposition analysis based on 38 industrial sub-sectors," Energy, Elsevier, vol. 245(C).
    40. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    41. Richard Perkins & Eric Neumayer, 2008. "Fostering Environment Efficiency through Transnational Linkages? Trajectories of CO2 and SO2, 1980–2000," Environment and Planning A, , vol. 40(12), pages 2970-2989, December.
    42. Guo, Mengmeng & Kuai, Yicheng & Liu, Xiaoyan, 2020. "Stock market response to environmental policies: Evidence from heavily polluting firms in China," Economic Modelling, Elsevier, vol. 86(C), pages 306-316.
    43. Liang, Wei & Gan, Ting & Zhang, Wei, 2019. "Dynamic evolution of characteristics and decomposition of factors influencing industrial carbon dioxide emissions in China: 1991–2015," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 93-106.
    44. Liu, Zhe & Adams, Michelle & Cote, Raymond P. & Chen, Qinghua & Wu, Rui & Wen, Zongguo & Liu, Weili & Dong, Liang, 2018. "How does circular economy respond to greenhouse gas emissions reduction: An analysis of Chinese plastic recycling industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 1162-1169.
    45. Hopestone Kayiska Chavula, 2013. "Telecommunications development and economic growth in Africa," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 5-23, January.
    46. Gevrek, Z.Eylem & Uyduranoglu, Ayse, 2015. "Public preferences for carbon tax attributes," Ecological Economics, Elsevier, vol. 118(C), pages 186-197.
    47. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    48. Lin, Boqiang & Xu, Bin, 2020. "Effective ways to reduce CO2 emissions from China's heavy industry? Evidence from semiparametric regression models," Energy Economics, Elsevier, vol. 92(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. Yang, Jun & Yang, Dingjian & Cheng, Jixin, 2024. "The non-rivalry of data, directed technical change and the environment: A theoretical study incorporating data as a production factor," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 417-448.
    2. Zhou, Qin & Cheng, Changgao & Fang, Zhou & Zhang, Hengquan & Xu, Yining, 2024. "How does the development of the digital economy affect innovation output? Exploring mechanisms from the perspective of regional innovation systems," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 1-17.
    3. Bihua Zhou & Yun Huang & Hang Su & Jingshan Wang, 2025. "Mechanism conflicts: carbon reduction pathways and optimization in China’s Big Data Policy," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    4. Lyu, Yanwei & Xiao, Xuan & Zhang, Jinning, 2024. "Does the digital economy enhance green total factor productivity in China? The evidence from a national big data comprehensive pilot zone," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 183-196.
    5. Zhu, Qing & Ma, Dan & He, Xin, 2023. "Digital transformation and firms' pollution emissions," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    6. Shuming Ren & Lianqing Li & Yueqi Han & Yu Hao & Haitao Wu, 2022. "The emerging driving force of inclusive green growth: Does digital economy agglomeration work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1656-1678, May.
    7. Fuming Deng & Lu Cai & Xiaolei Ma, 2024. "Does digital transformation restrict the carbon emission intensity of enterprises? Evidence from listed manufacturing enterprises in China," Natural Resources Forum, Blackwell Publishing, vol. 48(2), pages 364-384, May.
    8. Yang Liu & Yanlin Yang & Huihui Li & Kaiyang Zhong, 2022. "Digital Economy Development, Industrial Structure Upgrading and Green Total Factor Productivity: Empirical Evidence from China’s Cities," IJERPH, MDPI, vol. 19(4), pages 1-23, February.
    9. Zhou, Zhongsheng & Li, Zhuo & Du, Shanzhong & Cao, June, 2024. "Robot adoption and enterprise R&D manipulation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    10. Du, Juntao & Shen, Zhiyang & Song, Malin & Zhang, Linda, 2023. "Nexus between digital transformation and energy technology innovation: An empirical test of A-share listed enterprises," Energy Economics, Elsevier, vol. 120(C).
    11. Saia, Artjom, 2023. "Digitalization and CO2 emissions: Dynamics under R&D and technology innovation regimes," Technology in Society, Elsevier, vol. 74(C).
    12. Bai, Ling & Guo, Tianran & Xu, Wei & Liu, Yaobin & Kuang, Ming & Jiang, Lei, 2023. "Effects of digital economy on carbon emission intensity in Chinese cities: A life-cycle theory and the application of non-linear spatial panel smooth transition threshold model," Energy Policy, Elsevier, vol. 183(C).
    13. Pengfei Cheng & Yuhao Wang, 2024. "Impact of intellectual property protection on enterprise supply chain resilience: empirical evidence from China’s intellectual property pilot and demonstration city policy," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    14. Peter K. Kruse-Andersen, 2016. "Directed Technical Change and Economic Growth Effects of Environmental Policy," Discussion Papers 16-06, University of Copenhagen. Department of Economics.
    15. Feng, Yanchao & Liu, Gaoxiang & Meng, Xiangxu & Jiang, Kai & Huang, Rongbing & Zhang, Ci & Shi, Jiaxin & Pan, Yuxi, 2024. "How does digital government affect carbon intensity at the global level? New perspective of resource allocation optimization," Resources Policy, Elsevier, vol. 94(C).
    16. Zi Hui Yin & Wei Ping Zeng, 2024. "Path to sustainable development: Can industrial intelligence and technological innovation balance economic growth and environmental quality in China?," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4486-4504, October.
    17. Qihang Xue & Caiquan Bai & Weiwei Xiao, 2022. "Fintech and corporate green technology innovation: Impacts and mechanisms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3898-3914, December.
    18. Li, Boyang & Du, Yuqin & Chen, Guijing, 2025. "Dynamic nexus between urban digitization and pollutant discharge: RBC theory and empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 211(C).
    19. Lyu, Yanwei & Zhang, Jinning & Wang, Wenqiang & Li, Yutao & Geng, Yong, 2024. "Toward low carbon development through digital economy: A new perspective of factor market distortion," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    20. Tao, Yunqing & Wang, Dianjie & Ye, Yongwei & Wu, Haitao & Zhang, Yao, 2023. "The role of public environmental concern on corporate social responsibility: Evidence from search index of web users," Energy Economics, Elsevier, vol. 126(C).

    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:eee:eneeco:v:141:y:2025:i:c:s0140988324008302. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    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.