Transformations  in
Business & Economics

EMPIRICAL STUDY ON CHINA’S DIGITAL ECONOMY AND INDUSTRIAL CARBON EMISSION EFFICIENCY
Wenjing Chen

ABSTRACT: Excessive carbon emissions substantially impede the digital economy's sustainable development and accelerate climate change. A potential for low-carbon transformation exists due to the internet's integration with traditional industries. The digital economy, which represents digital change, is affecting economic progress. Although the digital economy means a new driver of economic growth, it is uncertain how this will affect industrial carbon emissions. A method called Distance Function in Non-Radial Direction (DF-ND) is suggested following the Chinese Digital Economy (DE) development to quantify the manufacturing industries' carbon outcome ratio. The effect of the DE on this performance is also examined. First, Entropy for Digital Economy (E-DE) technique is implemented to assess the country's DE improvement. Next, the DF-ND-based Energy Consumption Based and Input-Output (ECIO) approach is used to enhance and examine the efficiency of industrial carbon emissions. Third, using a Threshold Model based on Panel data (TMP), the ideal digital economy threshold interval for enhancing carbon emission efficiency is investigated. Inconsistent measurement performance of Chinese manufacturing carbon footprint is revealed by an evidence-based study, which also compares with the Spatialized Durbin Model (SDM) research method and conducts threshold tests for enhancing the financial stability of DE and emission efficiency. There is also apparent regional heterogeneity, with Carbon emission efficiency in eastern China being better than in the west and central China. The meaningful use is to inform decision-makers on how to encourage the digital economy’s growth best and strengthen the integration of various ecological administrations and China’s network infrastructure voluminous empirical facts. The development of the digital economy has a significant disruptive and transformative impact on the logistics sector’s carbon emissions. Improvements in the digital economy's marginal influence on cutting China's logistics sector's carbon emissions improve with rising quantiles declining manufacturing output.

KEYWORDS:  digital economy, industrial carbon emission, empirical analysis, entropy method.

JEL classification:  M14, M19, P2, D22.