Does the digital economy reduce carbon emissions? The role of technological innovation and trade openness

Abstract

In order to better understand the digital economy on carbon emissions, the intermediary effect model based on technological innovation and the panel threshold model based on trade openness and energy intensity are used to study the relationship between the digital economy and carbon emissions in G7 countries. In addition, a quantile regression analysis on the impact of the digital economy under different carbon emission levels is also conducted. The empirical results show that: (i) the digital economy has a significant inhibitory effect on per capita carbon emissions. (ii) The mechanism analysis shows that the digital economy can indirectly affect per capita carbon emissions by affecting technological innovation. (iii) The threshold effect of trade openness and energy intensity is significant. Under high openness and low energy intensity, the digital economy has a stronger inhibitory effect on per capita carbon emissions. (iv) The quantile regression results show that the carbon emission reduction effect of the digital economy is greater at the low-carbon emission level.