Digital Economy and Carbon Emission Intensity：A Cross-country Study

Abstract

This paper discusses the effect of the digital economy on carbon emission intensity by using the TIMG index as a proxy variable for the development of the digital economy in 72 countries from 2013 to 2020. The results of this paper show that (1) there is an inverted U-shaped relationship between the development of the digital economy and the carbon emissions of various countries; that is, the development of the digital economy first has a positive effect on carbon emissions, and then, its impact turns negative after it reaches a designated inflection point. (2) The results of the mechanism analysis show that the development of the digital economy can reduce carbon emissions by promoting industrial upgrading, while it could have an inverted U-shaped nonlinear effect on carbon emissions. (3) The development of a country's digital economy may have a significantly inverted U-shaped spatial spillover effect on neighboring countries.