Impact and mechanism of digital economy on China's carbon emissions: from the perspective of spatial heterogeneity.

ABSTRACT

Using panel data from 30 provinces and cities in China over the period 2013-2019, we intend to explore the mechanism and regional heterogeneity of the influence of digital economy development on carbon emissions. Specifically, this relationship is analyzed by including the geographical variable coefficient model into the chain mediation effect model, taking spatial correlation and heterogeneity into account. The results indicate that the digital economy decreases carbon emissions by enhancing energy intensity, but raises carbon emissions by fostering economic expansion, making digital economy a net contribution to carbon emissions. Moreover, the effect of the digital economy on carbon emissions varies by geographic location. For instance, the total impact is the greatest in northern China, followed by the southwest and southeast, and relatively minor in the northwest and south. Our findings contribute to the existing research and offer policymakers with a theoretical reference, allowing them to customize carbon reduction plans to local conditions.