Digital economy development and carbon emission intensity—mechanisms and evidence from 72 countries

This paper employs two-way fixed effects models, mediation models and spatial panel models to examine the impact of digital economy development on carbon emission intensity in 72 countries from 2013 to 2020 using TIMG index as the proxy variable of digital economic development. The results of this paper show that (1) there is an inverted U-shaped relationship between the development of the digital economy and the carbon emissions in various countries. The development of digital economy first has a positive effect on carbon emissions, and then, its impact turns negative after it reaches a designated inflection point. (2) The results of the mechanism analysis show that the development of the digital economy can reduce carbon emissions by promoting industrial upgrading, while it could have an inverted U-shaped nonlinear effect on carbon emissions through energy efficiency. (3) The development of a country's digital economy may have a significantly inverted U-shaped spatial spillover effect on neighboring countries. This paper provides reference for countries to formulate carbon emission reduction policies and promote the coordinated development of digital economy and environmental protection.