Evaluating the synergistic effect of digitalization and industrialization on total factor carbon emission performance

Abstract

Combating climate change and reducing carbon dioxide emissions are serious challenges shared by countries around the world. In the current era, digitalization has a significant impact on CO₂ emissions. However, prior studies have not assessed the synergy between digitalization and industrialization on carbon emission performance. The principal component analysis and non-radial directional distance function (NDDF) are used to measure the digitalization and total factor carbon emission performance of Chinese 245 prefecture-level cities from 2003 to 2019. This study establishes a fixed effects model to study the panel data. The findings are as follows: (1) Digitalization can significantly promote Chinese cities' CO₂ emission reduction. This result still holds after several robustness checks. (2) The heterogeneity results indicate that digitalization mainly improves central cities' carbon emission performance. Meanwhile, the impact of digitalization is more obvious after 2011. (3) Digitalization improves urban carbon emission performance through energy efficiency, industrial transformation, and technological innovation. (4) It is worth noting that digitalization synergizes with industrialization to improve carbon emission performance in Chinese cities. This study provides empirical evidence and some constructive policy recommendations for the government to push the collaborative development of the digitalization and low-carbon economy.

Keywords: CO(2) emission reduction; Digital development; Low-carbon transition; Mechanism analysis; Synergy.