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Inverted U-shape Impact of China's Manufacturing Digitization on Low-carbon Environmental Governance Performance

Author

Listed:
  • Xuegang Zhan
  • Rita Yi Man Li
  • Jing Xia

Abstract

Too much of a good thing can ultimately become detrimental. Is this the case in the manufacturing industry's carbon governance under the guise of digitization? This study examines the non-linear effect of low-carbon environmental governance at the provincial level in China's manufacturing sector which is the first of its kind. Using the slacks-based measure data envelopment approach (SBM-DEA), this study assesses changes in environmental governance performance over time, accounting for desirable and undesirable outputs. The findings indicate an inverted U-shaped relationship between manufacturing digitization and low-carbon environmental governance performance in China. This suggests that digitization improves environmental outcomes initially, but excessive digitization causes adverse environmental impacts due to increased energy use, resource depletion and waste production. It offers insights into the complicated interplay of benefits and challenges in manufacturing digitization and its implications for achieving sustainable, low-carbon development in China. It highlights the importance of thoughtful digital transition to support low-carbon development goals.

Suggested Citation

  • Xuegang Zhan & Rita Yi Man Li & Jing Xia, 2025. "Inverted U-shape Impact of China's Manufacturing Digitization on Low-carbon Environmental Governance Performance," Politická ekonomie, Prague University of Economics and Business, vol. 2025(Spec.issu), pages 243-274.
    • Handle: RePEc:prg:jnlpol:v:2025:y:2025:i:spec.issuei.:id:1488:p:243-274
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    References listed on IDEAS

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    3. Collard, Fabrice & Feve, Patrick & Portier, Franck, 2005. "Electricity consumption and ICT in the French service sector," Energy Economics, Elsevier, vol. 27(3), pages 541-550, May.
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    More about this item

    Keywords

    Manufacturing digitization; low-carbon environmental governance; U-shape; performance;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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