In this study, we assess the impact of digital economy development on urban carbon emissions using a difference-in-differences (DID) approach based on the quasi-natural experiment of the national big data comprehensive pilot zone (NBDCPZ) policy and panel data from 168 prefecture-level cities in China from 2006 to 2019. We find that the establishment of NBDCPZ has a significant carbon emission reduction effect. This finding is robust to various sensitivity tests. Further mechanism validation illustrates that the construction of NBDCPZ promotes the regional digital development level and reduces urban carbon emissions through three channels: improving energy efficiency to optimize energy consumption, increasing green total factor productivity, and promoting the clustering of high-tech industries. The heterogeneity analysis concludes that the carbon emission reduction effect of NBDCPZ policy varies with different regional locations and different city characteristics. Moreover, using spatial models, we find that the positive impact is characterized by spatial spillover effect. The findings provide detailed empirical evidence to formulate urban development strategies for enabling carbon reduction of the digital economy.
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