How does digitalization affect regional carbon emission efficiency? The role of carbon emission network

This paper explores the influence of digitalization on China’s carbon emission efficiency (CEE) in China based on the carbon emission network. Using China’s provincial panel data from 2011 to 2021, we introduce carbon linkage matrix and the structures of carbon mission network to estimate the relationship between digitalization and CEE from the network perspective. The results show that: (1) Digitalization has a ‘U’-shaped effect on regional CEE, and this effect remains significant after robustness test and endogeneity test. (2) Carbon emission network facilitates the spatial spillover of digitalization’s ‘U’-shaped effects on CEE in carbon emission network, while cross-regional carbon relationship’s sending and receiving are also observed in the network. (3) The carbon emission network has a moderating effect on the ‘U’-shaped effect of digitalization’s contributions on CEE. Specifically, carbon emission network exhibits a dual role: outward carbon linkages facilitate green technology and knowledge spillovers, thereby posing a positive moderating effects on digitalization’s contributions. In contrast, inward carbon linkages contribute to carbon relationships’ inflow, leading to a ‘pollution heaven’. As a result, it has a negative moderating effects on digitalization’s green benefits. These findings are still solid after robustness checks and endoEndogeneity test. (4) Block-level analysis shows that net spillover and bidirectional spillover blocks experience earlier turning points and stronger positive effects of digitalization, while the main inflow block faces delayed turning points and greater negative impacts of digitalization. The agent block displays higher abatement potential in later stages. These findings suggest that network-based collaborative emission-reduction mechanisms is indispensable and imperative. • Identifies a U-shaped effect of digitalization on China’s carbon emission efficiency (CEE). • The carbon emission network reshapes digitalization’s impact by spillovers and moderating effects across regions. • Spillover blocks achieve stronger green gains in the network, while inflow blocks face higher carbon burdens.