Digital economy, CO2 emissions and China's environmental sustainable development— an analysis based on TVP-VAR model

Xinyi Zhang, Yufan Chen and Tianqi Wang

Economic Analysis and Policy, 2024, vol. 84, issue C, 1945-1957

Abstract: The growth of digital economy and sustainable development of environment are important issues related to high-quality economic development in the new era. This paper selects the yearly data of China from 2007 to 2021, constructs the China's Environmental Performance Index(EPI), and establishes the TVP-VAR model to investigate the dynamic time-varying relationship among digital economy growth, CO2 emissions, and environment sustainability over short, medium and long-term. The results indicate that the relationships among them are time-varying at all terms. Specifically, in first, the growth of the digital economy exerts a negative impulse on CO2 emissions, with its immediate consequences being more pronounced than its prolonged impacts. Secondly, there exist positive impulses between the the digital economy and environment sustainability. CO2 emissions has a negative impact on sustainable development of environment. Thirdly, they have same influencing tendencies at certain time points, but different impact degrees. The impact of the digital economy on environmental sustainable development has significantly increased since the COVID-19 outbreak. Therefore, the development of digital economy can effectively reduce CO2 emissions and promote the sustainable development of the environment.

Keywords: Digital economy; CO2 emissions; Environmental sustainable development; TVP-VAR model; Markov chain Monte Carlo model (search for similar items in EconPapers)
JEL-codes: O11 O30 O44 Q43 Q56 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592624003217
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:84:y:2024:i:c:p:1945-1957

DOI: 10.1016/j.eap.2024.11.009

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().