The Impact of the Digital Economy on Low-Carbon, Inclusive Growth: Promoting or Restraining

Xianhong Xiang, Guoge Yang and Hui Sun
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Xianhong Xiang: Xinjiang Innovation Management Research Center, Xinjiang University, Urumqi 830046, China
Guoge Yang: Xinjiang Innovation Management Research Center, Xinjiang University, Urumqi 830046, China
Hui Sun: Xinjiang Innovation Management Research Center, Xinjiang University, Urumqi 830046, China

Sustainability, 2022, vol. 14, issue 12, 1-27

Abstract: Based on panel data from 30 provinces in China, this paper uses a two-way fixed effect model to empirically test the influence of regional digital economy development on the level of low-carbon, inclusive growth. The empirical study shows that: (1) The digital economy has a significant inverted U-shaped impact on China’s regional low-carbon, inclusive growth. It shows that regional digital economic development has a significant inverted U-shaped impact on low-carbon, inclusive growth (the inflection point is 0.3081), and it was found that most of the observations fall on the left side of the inverted U shape. (2) The inverted U-shaped influence has significant heterogeneity in the regional location, information degree, and factor productivity level. (3) The digital economy promotes low-carbon, inclusive growth mainly by improving the overall efficiency of source allocation, but low-carbon, inclusive growth may be curbed by distorting the allocation of capital elements. (4) Via dimensionality reduction analysis, we found that the inverted U-shaped impact of digital applications and digital finance on regional low-carbon, inclusive growth is more obvious. In addition, we also found that the inverted U-shaped impact of regional digital economic development on low-carbon ecology and social inclusiveness is more obvious. This study provides an important reference value for relevant departments to formulate low-carbon, inclusive development policies from the perspective of regional digital economic development.

Keywords: digital economy; low carbon inclusive growth; resource allocation; double-edged sword effect; economic growth (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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