Digital transformation and carbon intensity reduction in transportation industry: Empirical evidence from a global perspective

Digital transformation has become an inevitable trend in industrial development, but research on its environmental benefits has not been conducted in-depth. This paper focuses on the impact and mechanisms of the digital transformation of the transportation industry on its carbon intensity. Empirical tests are conducted based on the panel data of 43 economies from 2000 to 2014. The results show that the digital transformation of the transportation industry reduces its carbon intensity, but only the digital transformation that relies on domestic digital sources is significant. Second, technological progress, upgrading the industry's internal structure and improving energy consumption are the main channels through which the digital transformation of the transportation industry reduces its carbon intensity. Third, in terms of subdividing industries, the digital transformation of basic transportation has a more significant effect on reducing carbon intensity. For segmentation digitization, the carbon intensity reduction from digital infrastructure is more significant. This paper serves as a reference for countries to formulate development policies for the transportation industry and implement the Paris Agreement.