Spatial Effects of Digital Economy Development on Carbon Emissions: Empirical Evidence from the Provincial Level in China

Abstract The digital economy presents unprecedented opportunities to address the current dilemma between economic growth and environmental protection. Based on panel data from China's provinces during 2013–2021, this study employs spatial econometric models to empirically analyze the spatial effects of digital economy development on carbon emissions, and discusses the underlying mechanisms. The findings indicate that the advancement of the digital economy not only contributes to reducing local carbon emissions, but also exhibits spatial spillover effects on neighboring regions. The development of the digital economy indirectly achieves emission reduction through facilitating industrial restructuring, promoting technological advancements, and enhancing energy efficiency. These factors drive the spatial overflow of carbon emissions due to the digital economy's influence. Consequently, this study also provides policy implications for achieving economic low-carbon development in China and other emerging economies. JEL Classification : Q56 ; C520 ; C34 ; O3 ; O4