The impact of digital technology development on carbon emissions: A spatial effect analysis for China

We investigate the influence of digital technology development on carbon emissions in the framework of spatial analysis. Using a sample of 283 prefecture-level cities in China, we find that digital technology development can positively influence carbon abatement through the “spillover effect”, that is, it can not only reduce local carbon emissions, but also promote carbon abatement in the surrounding cities. The “siphon effect” which could negatively affect carbon abatement in the surrounding cities is outweighed by the “spillover effect”. In addition, due to increasing information transmission costs and local protectionism, the “spillover effect” of digital technology development on carbon emissions has geographical boundaries. Although no economic boundary is found, there exists an optimal economic distance interval. Furthermore, the heterogeneous analysis shows that government intervention would reduce the carbon abatement effect of digital technology development. Compared with the eastern cities, this negative impact is more significant in the central and western cities of China. Our results suggest that governments could achieve the dual goals of digital technology development and carbon abatement by promoting regional cooperation, and reducing local protectionism and administrative divisions.