Enhancing sustainability: Assessing the low-carbon impact of China's digital economy on residential carbon emissions

The emission-reduction effects of the digital economy (DE) in the production sector have been extensively verified. Conversely, the impacts of the DE on consumption-side emission reduction remain a subject of debate and inconsistency. Hence, our study seeks to bridge this gap by evaluating the low-carbon footprint of the DE, drawing from micro-level data of Chinese residents. By employing the Consumer Lifestyle Approach (CLA) for measuring Residential Consumption Carbon Emissions (RCCE) and utilizing Principal Component Analysis (PCA) to gauge DE's development level, we reveal a counterintuitive finding: DE has resulted in an increase rather than a reduction in RCCE. These results are both statistically significant and robust, passing rigorous validity tests. The unanticipated outcome can be attributed to the DE's role in stimulating consumption expenditure through income and price effects. Furthermore, our research uncovers regional disparities in the impact of the DE on RCCE, primarily due to the presence of the digital divide. To mitigate this, we recommend targeted government interventions promoting green consumption practices, including awareness campaigns and eco-guidelines, to foster a sustainable consumption transition. These insights offer pivotal strategies for aligning the DE's progression with carbon reduction targets.