Has the development of the digital economy raised or lowered the level of carbon emissions in cities?-Evidence from China.

This paper studies the impact of digital economy development on carbon emissions, which is a hot topic in the field of environmental economics. This topic is within the scope of the Frontiers in Environmental Science and is particularly in line with the theme of Environmental Economics and Management section in the journal. Firstly, this paper constructs the Digital Economy Development Index and its variable indicators to measure the development of the digital economy. Secondly, this paper uses urban panel data to reveal the impact of digital economy development on carbon emissions, and further adopts IV method to deal with endogeneity issues. Thirdly, this paper performs the heterogeneity analyses depending on the characteristics of the city. The results can provide a basis for formulating differentiated policies. Fourthly, this paper further explores the mechanism by which the digital economy affects carbon peaking. The results show that the digital economy may influence carbon peaking through upgrading of the industrial structure, technical innovation, and energy consumption. [ABSTRACT FROM AUTHOR]