From data to decarbonization: the digital economy’s role in reducing carbon emissions intensity and advancing environmental justice

Abstract Using panel data from 286 prefecture-level cities in China, this study constructs a city-level digital economy index and examines its impact on carbon emissions intensity and related mechanisms. Theoretically, the digital economy can reduce carbon emissions intensity by increasing energy efficiency. The empirical findings show that: First, the digital economy reduces carbon emission intensity, and this finding still holds after robustness tests such as the selection of city-to-port distance as an instrumental variable and the “Broadband China” pilots as a quasi-natural experiment. Second, the digital economy reduces carbon emissions intensity mainly by reducing the scale of energy consumption, optimizing the energy structure, and facilitating renewable energy deployment. Third, the carbon reduction effect of the digital economy is more pronounced in western and northeastern regions, second-tier and small cities, resource-based cities and peripheral cities. Finally, further analysis shows that the digital economy can mitigate environmental inequalities. On this basis, this paper puts forward proposals to vigorously develop the digital economy and promote the integration of digital and low-carbon development, in order to provide reference and reference to promote the high-quality development of the digital economy, thus empowering carbon emission reduction and achieving the equity of environmental welfare benefits.