Digital economy and urban low-carbon sustainable development: the role of innovation factor mobility in China

Abstract

To address climate change, one of the toughest contemporary environmental issues, growing importance is attached to the role of the digital economy in combating environmental degradation. Using panel data from 237 Chinese cities during the period 2011–2018, this paper attempts to provide a more systematic view of the relationship between the digital economy and urban low-carbon sustainable development to make up for the existing empirical inconclusiveness. Based on the fixed-effect model, results show that boosting the digital economy can effectively promote urban low-carbon sustainable development, and the conclusion remains robust across a series of robustness checks. Furthermore, innovation factor mobility is the critical transmission channel through which the digital economy affects urban low-carbon sustainable development. Spatiotemporal heterogeneity analysis reveals that the promoting effect of the digital economy on urban low-carbon sustainable development decreases from the northeast to the southeast of China, whereas the impact of innovation factor mobility on urban low-carbon sustainable development decreases from the southeast to the northeast with the Pearl River Delta as the core. Panel threshold regression analysis shows that the impact of the digital economy on urban low-carbon sustainable development is getting stronger with the increase of economic development level charactered with nighttime lights.