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Impact of digital technology innovation on carbon emission reduction and energy rebound: Evidence from the Chinese firm level

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  • Liu, Yue
  • Liu, Nengyu
  • Huo, Yijia

Abstract

Digital development has become a significant driving force for China to achieve its carbon peak and carbon neutrality goals. The technology revolution centers on digitization, providing innovative low-carbon production and business models for enterprises while opening up new possibilities for China's path to carbon reduction. This study examines the influence of digital technology innovation (DTI) on carbon reduction and energy rebound, presenting intriguing findings by analyzing data from listed Chinese companies between 2000 and 2021. The results show that for every 1 % increase in technological innovation, carbon emissions are reduced by 4.4 %; DTI can significantly reduce carbon emissions for companies heavily involved in technology and capital-intensive industries; Production efficiency and resource allocation are the pathways through which DTI affects reducing carbon emissions; DTI can generate an energy rebound effect, which can partially offset the impact of emission reduction. These insights provide theoretical references for enterprises seeking carbon reduction strategies and guidance for developing and implementing carbon reduction plans. The rational application of DTI can not only help enterprises realize green transformation, but also provide technical support for China to play a greater role in global climate governance.

Suggested Citation

  • Liu, Yue & Liu, Nengyu & Huo, Yijia, 2025. "Impact of digital technology innovation on carbon emission reduction and energy rebound: Evidence from the Chinese firm level," Energy, Elsevier, vol. 320(C).
    • Handle: RePEc:eee:energy:v:320:y:2025:i:c:s0360544225008291
    DOI: 10.1016/j.energy.2025.135187
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