Can the digital transformation of service trade alleviate global warming? An analysis from the perspective of developing economies

Shen Zhou, Binbin Lu and Shuhong Wang

Energy Economics, 2025, vol. 148, issue C

Abstract: The digital transformation of service trade presents significant opportunities for developing countries to achieve sustainable economic growth. This paper employs the Minimum Distance Slacks-Based Measure model to estimate the carbon emission efficiency of 100 developing countries and regions from 2010 to 2022, overcoming the limitations of traditional single-factor evaluations. It offers a comprehensive assessment of carbon emission efficiency and, based on this, investigates the impact of digital service trade on carbon emission efficiency. The findings reveal a significant positive “U-shaped” relationship between digital service trade and carbon emission efficiency, particularly in the financial services and information technology sectors. Further analysis identifies key drivers of this phenomenon, including changes in digital infrastructure demand, the adoption of technologies, and shifts in industrial structure. Moreover, countries that established digital trade rules early within Regional Trade Agreements (RTA) experience a more pronounced positive effect of digital service trade on carbon emission efficiency. Additionally, the study finds that government intervention and the extent of traditional communication technology penetration in developing countries have, to some extent, reinforced the relationship between digital service trade and carbon emission efficiency. Based on these findings, the paper advocates for accelerating the development of digital infrastructure, promoting innovations in green digital technologies and enhancing international cooperation and policy coordination as strategies for addressing climate change and mitigating global warming.

Keywords: Climate warming; Digital services trade; Carbon emission efficiency; The minimum distance slacks-based measure model; Positive “U-shape” (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325004463

DOI: 10.1016/j.eneco.2025.108619

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