The Digital Economy and Carbon Productivity: Evidence at China’s City Level

Abstract

Based on the panel data of 285 prefecture-level cities in China, this paper empirically tests the impact of digital economic development on carbon productivity by using a two-way fixed effect model, intermediary mechanism model and threshold mechanism model. The results show that: (1) the digital economy can significantly improve carbon productivity, and this conclusion is still valid after a series of robustness tests. (2) An intermediary mechanism test found that technological innovation, reducing energy consumption intensity and improving urban productivity are the three primary paths through which the digital economy significantly improves carbon productivity. (3) A threshold mechanism test found that the promotion effect of the digital economy on carbon productivity is also affected by the degree of marketization and the level of human capital, showing a single threshold effect and a U-shaped trend. (4) The impact of the digital economy on carbon productivity has regional heterogeneity, urban agglomeration heterogeneity, and resource-based city heterogeneity. This study provides substantial empirical evidence for the relevant authorities to formulate green development policies from the perspective of digital economy development.