THE IMPACT OF DIGITAL ECONOMY DEVELOPMENT ON CARBON EMISSION INTENSITY REDUCTION: EVIDENCE FROM CHINA

Abstract

Digital economy development is important for promoting industrial upgrades and high-quality economic growth. As excessive carbon emissions are a threat to sustainable economic growth, whether digital economy development contributes to reducing carbon emission intensity has gained attention. This study employs the fixed effects model and spatial Dubin model to examine the effect of digital economy development in 275 cities in China on the reduction of carbon emissions intensity. The results show effectiveness in reducing carbon intensity with a spatial spillover effect to neighboring areas. Urban economic primacy plays a positive modulating role in carbon reduction. Policy implications are discussed.