Blessing or curse? The role of digital technology innovation in carbon emission efficiency.

ABSTRACT

Digital technology advancement provides a significant impetus to achieve China's "dual-carbon" goals, yet it also gives rise to a series of challenges. Therefore, studying the relationship between digital technology innovation and carbon emission efficiency is of paramount importance. This study theoretically analyzes and empirically tests the influence of digital technology innovation (DTI) on total factor carbon emission efficiency (TFCE) using panel data from 268 Chinese cities between 2006 and 2021. The results indicate that (1) DTI exhibits a "U-shaped" pattern on urban TFCE, with a decrease followed by an increase. (2) Conventional technological innovation (TI) also displays a "U-shaped" relationship with TFCE, with the turning point occurring earlier than that of DTI. DTI surpasses TI in bringing about later-stage improvements in carbon emission efficiency. (3) Mechanism tests reveal that digital technology innovation indirectly affects TFCE through energy effects, technological effects, structural effects, and regulatory effects. (4) The impact of DTI on urban TFCE varies significantly due to differences in geographical location and resource endowments. (5) The development of urban polycentricity advances the turning point at which DTI enhances TFCE while amplifying both the initial "pro-carbon" effect and the subsequent "carbon reduction" effect of DTI. (6) DTI has a spatial spillover effect on urban TFCE. This study provides empirical evidence and policy recommendations for policymakers to advance the digitalization, greening, and decarbonization transformation of cities.