Assessing the role of digital economy agglomeration in energy conservation and emission reduction: Evidence from China

As an important economic phenomenon and development trend, it is meaningful to understand the impact of digital economy agglomeration (DIAGG) on energy conservation and emission reduction to achieve the dual carbon target in China. Using the panel data of 285 cities in China from 2011 to 2018, the study comprehensively investigates the influence mechanism, nonlinear effect, and spatial spillover effect of DIAGG on energy conservation and emission reduction by employing multiple econometric models. The results show that the DIAGG is beneficial to promote energy conservation and emission reduction by the mechanisms of the innovation effect, structural effect, and scale effect. However, the threshold model shows that DIAGG has a non-linear impact on energy conservation and emission reduction. When the DIAGG exceeds 0.083 and 1.194, respectively, the impact of DIAGG on emission reduction changes from inhibiting to promoting, while the marginal effect on energy conservation decreases. In addition, there is a significant positive spatial spillover effect of DIAGG on energy conservation and emission reduction, which inhibits energy conservation and emission reduction in surrounding cities. This spatial spillover effect decreases in the maturity period. This study provides policy insights for promoting energy conservation and emission reduction to achieve sustainable urban development.