Variation of digital economy's effect on carbon emissions: improving energy efficiency and structure for energy conservation and emission reduction

Abstract

The significance of accurately assessing the influence of digital economy growth upon reducing emission of carbon in the context of worldwide climate governance cannot be overstated. This is crucial in encouraging low-carbon economic advancement at national level, achieving carbon peak and neutrality as soon as possible, and creating a shared future for humanity. A mediating effect model is established using cross-country panel data from 100 countries, ranging from 1990 to 2019, to assess the influence of digital economy development upon emission of carbon and to explore its underlying mechanism. The study found that: the growth of national emission of carbon can be considerably suppressed by digital economy development, and the reduction of emissions is positively associated to each country's level of economic advancement. Digital economy growth influences regional emission of carbon via intermediary channels like energy structure and efficiency, with energy intensity having a particularly noticeable intermediary impact. The inhibitory influence of digital economy development upon emission of carbon differs among countries with different levels of income, and improvements in energy structure and efficiency can precede to energy savings and emission reduction in both middle- and high-income countries. The above findings offer policy guidance for harmoniously advancing the growth of digital economy and climate management, hastening the low-carbon transformation of national economies, and implementing China's carbon peaking initiative.

Keywords: Carbon emissions; Climate governance; Digital economy; Energy efficiency; Energy mix; Mediating effect model.