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Impact of Digital Economy on Carbon Emissions and Its Mechanism: Evidence from China

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  • Fang Huang

    (Business School, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Chong Wu

    (Business School, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

Advancing the digital economy while curbing carbon emissions is essential for fostering high-quality economic growth. Based on China’s provincial panel data from 2011 to 2021, this study adopts an empirical model to investigate the direct influence of digital economic development on carbon emissions and utilizes both a mediating effects model and a moderating effects model to explore the transmission mechanism of green technological innovation and the moderating effect of R&D investment. The research results indicate that the following: (1) The digital economy contributes to carbon emissions reduction. (2) The analysis of heterogeneity demonstrates that the impact of the digital economy on carbon emissions is pronounced in the eastern and central regions of China but is insignificant in the western provinces. Furthermore, the carbon mitigation effect of the digital economy is more potent in regions with high marketization compared to those with low marketization. (3) The mediation effect analysis shows that green technology innovation plays a transmitting role between the digital economy and carbon emissions reduction. (4) The moderating effect test reveals that R&D investment enhances the digital economy’s ability to reduce carbon emissions. The conclusions highlight the need to optimize digital economy development and strengthen green technology innovation to achieve carbon emissions reduction.

Suggested Citation

  • Fang Huang & Chong Wu, 2024. "Impact of Digital Economy on Carbon Emissions and Its Mechanism: Evidence from China," Sustainability, MDPI, vol. 16(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:8926-:d:1499255
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    References listed on IDEAS

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    Cited by:

    1. Fan Wu & Mingyang Li & Huanshui Huang, 2024. "Innovation Ecosystems and Sustainable High Innovation Performance: Evidence from the Guangdong–Hong Kong–Macao Greater Bay Area," Sustainability, MDPI, vol. 16(21), pages 1-26, October.

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