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      The Impact of the Digital Economy on CO2 Emissions: A Theoretical and Empirical Analysis

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      Sustainability
      MDPI AG

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          Abstract

          Since the Industrial Revolution, human activities have led to the emission of a lot of greenhouse gases, such as carbon dioxide, sharply increasing the concentration of greenhouse gases in the atmosphere and resulting in serious global warming. With the rapid development of computer technology, the digital economy is gradually becoming the engine of economic growth. As a new economic mode, how the digital economy affects the environment is worth studying. In this paper, we introduced the digital economy into the Solow growth model as technological progress and conducted fixed-effects regressions based on the global panel data of 190 countries from 2005 to 2016. We found an inverted U-shaped, non-linear relationship between CO2 emissions and the digital economy, which supports the environmental Kuznets curve (EKC) hypothesis. We suggest that governments need to not only adopt hedging policies to reduce CO2 emissions caused by the digital economy in the early stage but also promote the development of the digital economy to achieve the goal of global collaborative environmental protection.

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          Most cited references47

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          Economic Growth and the Environment

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            Testing slope homogeneity in large panels

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              Environmental Kuznets Curve Hypothesis: A Survey

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                Author and article information

                Contributors
                Journal
                SUSTDE
                Sustainability
                Sustainability
                MDPI AG
                2071-1050
                July 2021
                June 29 2021
                : 13
                : 13
                : 7267
                Article
                10.3390/su13137267
                aa393d22-edab-4931-9e35-302f9be8fdaa
                © 2021

                https://creativecommons.org/licenses/by/4.0/

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