Environmental Protection Goes Digital: A Policy Perspective on Promoting Digitalization for Sustainable Development in China

Abstract

In the current discourse surrounding economic and societal growth, much emphasis has been placed on the role and impact of digitalization. Despite this trend, research exploring the ecological implications of the digital economy remains scarce. To fill this research gap, our study aimed to investigate the correlation between the digital economy and carbon emissions, specifically examining the moderating impact of environmental regulations. For empirical analysis, we utilize the CRITIC methodology to establish a thorough set of indicators that can evaluate the performance of China’s digital economy. According to our empirical results, the digital economy seems to exert a moderating influence on the levels of carbon dioxide (CO2) emissions, and this negative impact is more pronounced in affluent and densely populated regions of China. The effectiveness of digitalization in reducing pollution can be enhanced by the enforcement of environmental regulations. This paper elucidates the potential mechanisms via which the digital economy affects carbon dioxide emissions, and constructs a framework for the mechanisms via which the digital economy affects the environment by influencing the carbon dioxide emissions, providing a new way for enterprises and governments to participate in environmental protection and expanding the content of research related to the digital economy.