Digital economy, fiscal decentralization, and carbon emission intensity: Evidence from China

As a product of the new round of technological revolution, digital economy plays a pivotal role in reducing carbon emissions. Based on China's provincial panel data from 2011 to 2020, this study explores the impact of digital economy on the carbon emission intensity by using the fixed-effects, moderating-effects, and threshold-effects models. The results are as follows: (1) Digital economy and carbon emission intensity exhibit a significant negative correlation, and this conclusion remained valid even after a series of robustness and endogeneity tests. (2) Heterogeneity results indicate that the inhibitory effect of digital economy on the carbon emission intensity is more pronounced in the Eastern regions than in the Central and Western regions. (3) The moderating effect mechanism suggests that fiscal decentralization plays a significant positive moderating role between digital economy and carbon emission intensity. (4) The threshold effect mechanism indicates that the inhibitory effect of digital economy on the carbon emission intensity exhibits a nonlinear, increasing ''marginal effect'' characteristic. The conclusions of this study have important practical implications for promoting green and low-carbon high-quality development and achieving carbon peak and carbon neutrality goals.