Digital Economy and Carbon Emission Decoupling: Evidence from a Cross-Country Finite Mixture Model Analysis

Low-carbon energy transition (LET) has become an important global development strategy. However, in the contemporary industrial era, carbon emissions are intricately intertwined with economic growth based on the extensive use of fossil energy. To this end, the key to a more acceptable push for LET is to achieve carbon emissions decoupling (CED). The rapidly developing digital economy (DE) introduces novel possibilities for it. Using a Finite Mixture Model, this study aims to analyze how DE heterogeneously impacts CED across 66 countries from 2011 to 2022. As of 2022, 41% of countries attained strong decoupling status, 33% reached weak decoupling status. In terms of the effect of DE on CED, both chance and challenge are shown. DE exhibits dual effects: it enhances CED in high-education countries but hinders it in countries with rapid population growth. Government efficiency and gender equality amplify DE’s chance role, while natural gas or clean energy reliance weakens it. DE indirectly promotes CED via low-carbon behavior while raising risks through easier credit access. Meanwhile, the heterogeneity of institutional and economic characteristics in countries may influence the effect of DE on CED. These findings offer a theoretical foundation to reconcile economic sustainability with climate mitigation in digital transitions, providing actionable insights for policymakers to leverage DE’s potential in achieving SDG 13.