IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i13p5705-d1428536.html
   My bibliography  Save this article

The Impact and Mechanism behind the Effect of a Digital Economy on Industrial Carbon Emission Reduction

Author

Listed:
  • Gang Zhou

    (School of Economics, Ocean University of China, Qingdao 266100, China)

  • Jiaxin Gao

    (School of Economics, Ocean University of China, Qingdao 266100, China)

  • Yao Xu

    (Business School, Qingdao University of Technology, Qingdao 266520, China
    Business School, Nanjing Normal University, Nanjing 210023, China)

  • Yi Zhang

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Hao Kong

    (Fujian Provincial Key Laboratory of Coast and Island Management Technology, Fujian Institute of Oceanology, Xiamen 361013, China)

Abstract

Digital technologies hold significant potential for addressing environmental issues, such as air pollution and rising global temperatures. China is focusing on accelerating the dual transformation of industrial greening and digitization to accomplish the UN’s 2030 Agenda for Sustainable Development and sustainable economic growth. By combining a two-way fixed effect model, a mediated effect model, and a panel threshold model, this research endeavors to explore the effect that the expansion of the digital economy has on the level of carbon emission intensity that is produced by industry. The research yielded the following primary conclusions. (1) The digital economy effectively reduces the industrial carbon intensity via three distinct mechanisms: enhancements to the technological and innovative capacities of China, improvements in energy efficiency, and enhancements to the country’s overall industrial structure. (2) Regions where industrialization and digitization are highly integrated and developing, as well as the early pilot regions of the Comprehensive Big Data Pilot Zones, are particularly susceptible to this inhibitory effect. This research offers a theoretical backing for advancements in the digital economy; the achievement of energy-saving and carbon-reducing sustainable development objectives; and the establishment of green, ecologically friendly, and recycling development strategies.

Suggested Citation

  • Gang Zhou & Jiaxin Gao & Yao Xu & Yi Zhang & Hao Kong, 2024. "The Impact and Mechanism behind the Effect of a Digital Economy on Industrial Carbon Emission Reduction," Sustainability, MDPI, vol. 16(13), pages 1-22, July.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5705-:d:1428536
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/13/5705/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/16/13/5705/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luyang Tang & Bangke Lu & Tianhai Tian, 2023. "The Effect of Input Digitalization on Carbon Emission Intensity: An Empirical Analysis Based on China’s Manufacturing," IJERPH, MDPI, vol. 20(4), pages 1-22, February.
    2. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    3. Lyu Jun & Shuang Lu & Xiang Li & Zeng Li & Chenglong Cao, 2023. "Spatio-Temporal Characteristics of Industrial Carbon Emission Efficiency and Their Impacts from Digital Economy at Chinese Prefecture-Level Cities," Sustainability, MDPI, vol. 15(18), pages 1-17, September.
    4. Menggen Chen & Songyangyang Zhao & Jiawen Wang, 2023. "The Impact of the Digital Economy on Regional Carbon Emissions: Evidence from China," Sustainability, MDPI, vol. 15(20), pages 1-34, October.
    5. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei & Su, Bin, 2019. "How information and communication technology drives carbon emissions: A sector-level analysis for China," Energy Economics, Elsevier, vol. 81(C), pages 380-392.
    6. Shuangcheng Luo & Yangli Yuan, 2023. "The Path to Low Carbon: The Impact of Network Infrastructure Construction on Energy Conservation and Emission Reduction," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ling Huang & AL-Barakani Abdo & Nadeem Aljonaid, 2025. "Digital Transformation and Carbon Reduction in Chinese Industrial Enterprises: Mediating Role of Green Innovation and Moderating Effects of ESG Practices," Sustainability, MDPI, vol. 17(9), pages 1-25, April.
    2. Gang Zhou & Li Zhang & Yao Xu & Lewei Hong & Yi Zhang, 2025. "The Digital: A Catalyst for Accelerating the Quality Improvement and Sustainable Development of China’s Marine Industry," Sustainability, MDPI, vol. 17(21), pages 1-28, October.

    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. Wang, Jianda & Guo, Dongsheng, 2023. "Siphon and radiation effects of ICT agglomeration on green total factor productivity: Evidence from a spatial Durbin model," Energy Economics, Elsevier, vol. 126(C).
    2. El Hana, Nadr & Kondrateva, Galina & Martin, Silvia, 2024. "Emission-smart advertising: Balancing performance with CO2 emissions in digital advertising," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    3. Zhang, Wei & You, Jianmin & Lin, Weiwen, 2021. "Internet plus and China industrial system's low-carbon development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    4. Wang, Lianghu & Shao, Jun, 2024. "The energy saving effects of digital infrastructure construction: Empirical evidence from Chinese industry," Energy, Elsevier, vol. 294(C).
    5. Tao, Weiliang & Weng, Shimei & Chen, Xueli & ALHussan, Fawaz Baddar & Song, Malin, 2024. "Artificial intelligence-driven transformations in low-carbon energy structure: Evidence from China," Energy Economics, Elsevier, vol. 136(C).
    6. Kunpeng Ai & Honghe Li & Wenjie Zhang & Xiang-Wu Yan, 2024. "Digital Economy and Green and Low-Carbon Transformation of Land Use: Spatial Effects and Moderating Mechanisms," Land, MDPI, vol. 13(8), pages 1-28, July.
    7. Jie Zhou & Hanlin Lan & Cheng Zhao & Jianping Zhou, 2021. "Haze Pollution Levels, Spatial Spillover Influence, and Impacts of the Digital Economy: Empirical Evidence from China," Sustainability, MDPI, vol. 13(16), pages 1-18, August.
    8. Chiu, Chien-Liang & Chang, Ting-Huan, 2009. "What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1669-1674, August.
    9. Jean C. Kouam & Simplice Asongu, 2022. "The non-linear effects of fixed broadband on economic growth in Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 50(5), pages 881-895, August.
    10. Tianchu Feng & Andrea Appolloni & Jiayu Chen, 2024. "How does corporate digital transformation affect carbon productivity? Evidence from Chinese listed companies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 31425-31445, December.
    11. Khémiri, Wafa & Noubbigh, Hédi, 2020. "Size-threshold effect in debt-firm performance nexus in the sub-Saharan region: A Panel Smooth Transition Regression approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 335-344.
    12. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance Policy Thresholds for Economic Growth in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 672-689, July.
    13. Jingwen Lu & Lihua Dai, 2023. "Examining the Threshold Effect of Environmental Regulation: The Impact of Agricultural Product Trade Openness on Agricultural Carbon Emissions," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    14. Coudert, Virginie & Couharde, Cécile & Mignon, Valérie, 2015. "On the impact of volatility on the real exchange rate – terms of trade nexus: Revisiting commodity currencies," Journal of International Money and Finance, Elsevier, vol. 58(C), pages 110-127.
    15. Mara Leticia Rojas & María María Ibáñez Martín & Carlos Dabús, 2023. "Is Debt Always Harmful for Economic Growth? Evidence from Developing Countries," Working Papers 292, Red Nacional de Investigadores en Economía (RedNIE).
    16. Kelbesa Megersa & Danny Cassimon, 2015. "Public Debt, Economic Growth, and Public Sector Management in Developing Countries: Is There a Link?," Public Administration & Development, Blackwell Publishing, vol. 35(5), pages 329-346, December.
    17. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    18. Balazs Egert, 2022. "Public policy reforms and their impact on productivity, investment and employment: new evidence from OECD and non-OECD countries," Public Sector Economics, Institute of Public Finance, vol. 46(2), pages 179-205.
    19. Ruofan Liao & Zhengtao Chen & Jirakom Sirisrisakulchai & Jianxu Liu, 2025. "Enhancing Rural Economic Sustainability in China Through Agricultural Socialization Services: A Novel Perspective on Spatial-Temporal Dynamics," Agriculture, MDPI, vol. 15(3), pages 1-28, January.
    20. Fernández de Guevara, Juan & Maudos, Joaquín & Salvador, Carlos, 2021. "Effects of the degree of financial constraint and excessive indebtedness on firms’ investment decisions," Journal of International Money and Finance, Elsevier, vol. 110(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:16:y:2024:i:13:p:5705-:d:1428536. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.