The carbon emission reduction effect of the digital economy from the perspective of biased technological progress

Abstract

As an emerging economic form, the digital economy has become a new driving force for high-quality economic development. It plays a significant role in achieving carbon neutrality goals by promoting technological progress. This paper constructs a general equilibrium model to reveal the impact of the digital economy on carbon emissions from the perspective of biased technological progress. Empirical tests show that the development of the digital economy can reduce carbon emission intensity, with the conclusion remaining valid after conducting endogeneity and robustness tests that tolerate "non-exogenous instrumental variables." Using a causal mediation model, we find that the digital economy lowers carbon emission intensity through biased technological progress, with a direct effect of approximately -0.79. Heterogeneity analysis indicates differences in the impact of the digital economy on carbon emissions across eastern, central, and western regions, as well as before and after the implementation of the "Broadband China" strategy. The impact of digital economy development on carbon emissions in the western region exhibits a latecomer advantage, where a 1% increase in the digital economy development level in the central and western regions directly leads to a reduction in carbon emission intensity of about 3.346%, while the eastern region sees a reduction of only about 1.896%. After the implementation of the "Broadband China" strategy, biased technological progress significantly reduces carbon emission intensity. This paper studies the impact of digital economy development on carbon emissions from a new analytical perspective, providing suggestions for better integrating and serving the new development paradigm to achieve carbon neutrality goals.

Keywords: Biased technological progress; Carbon emissions; Digital economy.