Synergistic Governance of Digital Economy Development and Carbon Reduction: Evidence from Chinese Cities

Abstract

Abstract As a fundamental driving factor for high-quality advancement, elucidation remains requisite regarding the potential of the digital economy (DE) in achieving conjoined governance aimed at pollution reduction and carbon reduction (PCR). This study conducts a comprehensive analysis of the nexus between digital economic development (DED) and carbon mitigation. Empirical analyses are conducted utilising panel data encompassing Chinese municipalities from 2011 to 2020, enabling a quantitative evaluation of the influence exerted by DED on the concerted governance of carbon reduction and haze mitigation. The results emphasise that: DED cultivates conducive circumstances for curtailing carbon emissions and addressing haze pollution, with subsequent robust testing reinforcing the enduring significance of DED’s impact on PCR. Heterogeneity analysis reveals the pronounced effect of DED on PCR, particularly discernible in provincial capitals, eastern municipalities, as well as first and second-tier urban centers, alongside metropolises of significant magnitude. The reciprocal impact of DED on PCR predominantly stems from industrialisation synergies, primarily attributed to the optimisation and advancement of industrial structure, concomitant with enhancements in production efficiency.