How does digital technology promote carbon emission reduction? Empirical evidence based on e-commerce pilot city policy in China

Abstract

Digital technology is an effective way to realize the carbon neutrality target in China. Therefore, based on panel data at the city level in China from 2006 to 2016, we take the e-commerce pilot policy as a quasi-natural experiment, using the staggered difference-in-differences (DID) method to explore the effect of digital technology development on carbon emissions and its transmission mechanism. The conclusion of this paper shows that (ⅰ) the e-commerce pilot policy has significantly reduced carbon emissions. After a series of robustness tests, this empirical conclusion is still valid. (ⅱ) The inhibitory effect of different waves of e-commerce pilot cities on carbon emissions sequentially decreases. The e-commerce pilot policy has a greater effect on reducing carbon emissions in non-old industrial based cities and non-resource-based cities. (ⅲ) Implementing the e-commerce pilot city policy mainly reduces urban carbon emissions by optimizing resource allocation, reducing energy consumption and upgrading the industrial structure. (ⅳ) In addition, implementing the e-commerce pilot city policy has a significant positive carbon-reducing linkage effect with the carbon trading pilot policy and the low-carbon city pilot policy. The findings of this paper provide empirical evidence for carbon emission reduction, which has implications for upgrading urban construction patterns and promoting green urban development.

Keywords: Carbon emission reduction; Digital technology; E-Commerce pilot city policy; Green development; Staggered difference-in-differences method.