Digital Economy and Environmental Quality: Insights from the Spatial Durbin Model

Abstract

Recent developments in attaining carbon peaks and achieving carbon neutrality have had enormous effects on the world economy. Digitalization has been considered a viable way to curtail carbon emissions (CE) and promote sustainable economic development, but scant empirical studies investigate the link between digitalization and CE. In this context, this study constructs the digitalization index using the entropy value method and spatial Markov chain, and the spatial Durbin model is employed to analyze its impact mechanism and influence on urban CE in 265 prefecture-level cities and municipalities in China from 2011 to 2017. The results indicate that: (1) The overall development level of the digital economy (DE) posed a significant spatial effect on urban environmental pollution. However, the effect varies according to the different neighborhood backgrounds. (2) The DE impedes urban environmental deterioration directly and indirectly through the channels of industrial structure, inclusive finance, and urbanization. (3) The development of the DE significantly reduces pollution in cities belonging to urban agglomerations, while the development of the DE escalates emissions in nonurban agglomeration cities. Finally, based on the results, important policy implications are put forward to improve the environmental quality of cities.

Research on the spatial patterns and evolution trends of the coupling coordination between digital finance and sustainable economic development in the Yellow River Basin, China

“…While most existing studies have directly used the China digital inclusive finance development index, this paper innovatively chooses the three dimensions of breadth of coverage, depth of use, and digitization level. In addition, referring to the method of Wang et al (2022) [ 23 ], the entropy value method is used to measure DF, specifically because the three dimensions of DF can more comprehensively and accurately measure the development of DF.…”

Effects of Big Data on PM2.5: A Study Based on Double Machine Learning

“…In the eastern region, the digital economy does not have a noticeable impact on carbon emissions. Conversely, in the central region, the digital economy exacerbates carbon emissions, while in the western region, it serves to reduce them [48]. Contrarily, another investigation highlighted that the growth of the digital economy resulted in a significant decrease in pollution levels in the eastern region and a notable reduction in CO 2 emissions in the western region [49].…”

Impact of the digital economy on carbon dioxide emissions in resource-based cities

“…Smart sensors and automation systems precisely control energy use throughout the production process, thereby curtailing unnecessary consumption and carbon emissions 8 . Additionally, digital technologies play a crucial role in integrating and managing renewable energy sources 33 . Advanced data analytics and smart grid technologies enable more effective integration of renewable sources like solar and wind energy into the power grid, reducing reliance on fossil fuels.…”

“…During this phase, although technological advancements continue, the marginal benefits of improving energy efficiency and reducing emissions decrease due to the widespread adoption of initially easier innovations, making further technological improvements more challenging 36 . Moreover, with the rise of emerging digital economy sectors like data centers and cloud services, the overall energy demand may increase, especially in cities where the energy structure is still predominantly fossil fuel-based 33 . Concurrently, the rapid growth of electronic waste presents new challenges for environmental management 47 .…”