A STUDY OF REGIONAL DIGITALIZATION AND CARBON EMISSION REDUCTION: EVIDENCE FROM GERMAN FEDERAL STATES

The transition toward carbon neutrality requires a profound transformation of both technological and industrial systems. Digitalization, as a general-purpose technology, has been increasingly recognized as a potential driver of green development. This study empirically investigates the impact of regional digitalization on carbon emission reduction across 16 German federal states from 2000 to 2020. First, a comprehensive digitalization index is constructed using the CRITIC–TOPSIS method, capturing multiple dimensions of digital development. Second, a panel fixed-effects model is applied to examine the relationship between digitalization and carbon emission intensity. The results show that higher levels of digitalization significantly contribute to reducing CO₂ emissions, with notable regional heterogeneity. Furthermore, mechanism analysis reveals that technological innovation and industrial structure upgrading serve as important mediating channels through which digitalization facilitates carbon reduction. These findings highlight the dual role of digitalization in promoting innovation-driven growth and enabling structural transformation, thereby providing practical insights for aligning digital and low-carbon development strategies.