Impact of digitization on carbon productivity: an empirical analysis of 136 countries

Abstract

AbstractEnhancing carbon productivity (CP) is key to achieving carbon reduction goals while maintaining economic growth. Digital technology plays a significant role in improving CP. Based on panel data from 136 countries worldwide from 2000 to 2020, this study empirically examines the impact of digitalization on CP and its mechanisms using fixed-effects and mediation models. The conclusions are as follows: (1) Overall, digitalization significantly enhances CP. (2) In terms of the mechanism, digitalization primarily improves CP through technological innovation and mitigating income inequality. (3) In terms of the quantile regression results, as the quantile level of CP increases, the promoting effect of digitalization on CP gradually strengthens. (4) From the perspective of heterogeneity among regions, income levels and human capital levels, digitalization has the greatest promotion effect on carbon productivity in European countries, high-income countries and high human capital countries. This study provides a reference for policymakers worldwide to use digital technology in achieving carbon emission reduction targets.