Toward low carbon development through digital economy: A new perspective of factor market distortion

• Published in: Technological forecasting & social change 2024-11, Vol.208, p.123685, Article 123685
• Main Authors: Lyu, Yanwei, Zhang, Jinning, Wang, Wenqiang, Li, Yutao, Geng, Yong
• Format: Article
• Language: English
• Subjects: Digital economy; Factor market distortion; Intermediary effect model; Low carbon development
• ISSN: 0040-1625
• DOI: 10.1016/j.techfore.2024.123685

The development and application of digital technology has brought profound influences on our economic development. It is therefore urgent to measure such impact on low carbon development. This study aims to measure the impact of digital economy development among Chinese provinces by using an intermediary effects model and conducting heterogeneity analysis. The results show that digital economy can facilitate low carbon development in China by alleviating capital and labor market distortions. Industrial digitization has the greatest impact, while digital industrialization has the smallest impact. Moreover, from a region perspective, digital economy is more effective to promote low carbon development in those eastern regions, while it is critical to improve the digital economy development environment in those central and western regions. Finally, several policy recommendations are raised by considering the Chinese realities. •The role of digital economy on promoting low carbon development is evaluated;•A fully arranged polygonal graphical index method is developed for such evaluation;•The intermediation channel of factor market distortion is explored;•Regional disparity is investigated to prepare more region-specific policies.