Study on the spatial characteristics of the digital economy on urban carbon emissions

This paper explores the spatial impact effects and spatio-temporal heterogeneity of the digital economy on urban carbon emissions (CO2). Specifically, firstly, the Digital Economy Index (DEI) system of 285 cities in China was constructed and the Global Principal Component Analysis (GPCA) was applied to evaluate the digital economy level of Chinese cities. Based on spatial correlation and spatial heterogeneity, the paper explores the global spatial impact and spatio-temporal heterogeneity of the impact of digital economy on CO2 using spatial Durbin model (SDM) and geographic time-weighted regression (GTWR), respectively. And the mechanism variables are used to further demonstrate the mechanism effect and nonlinear characteristics of the impact of digital economy on CO2. The findings indicate that (1) the advancement of the digital economy is beneficial for achieving carbon abatement goals, and the impact of the digital economy on CO2 mitigation remains stable across several robustness tests. (2) The spatial spillover effect of the digital economy on the impact of carbon reduction is not significant. And there is significant temporal and spatial heterogeneity in the impact of the digital economy on carbon emissions. (3) According to the mechanism analysis, the digital economy reduces carbon emissions by encouraging the development of green technologies and promoting the modernization of industrial structures. And there are non-linear characteristics of this effect. This study concludes that the digital economy can support China’s goal of achieving “carbon peak and carbon neutrality.” However, it is important to consider the differences in urban development over time and space. Leveraging the city’s strengths to develop a digital economy in a unique way that will help achieve China's carbon reduction goals.