Digital Innovations Driving Urban Sustainability: Key Factors in Reducing Carbon Emissions

Ziyao Fang and Ziyang Liu (victor@kgu.ac.kr)
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Ziyao Fang: The Graduate School of Global Business, Kyonggi University, Suwon-si 16227, Republic of Korea
Ziyang Liu: The Graduate School of Global Business, Kyonggi University, Suwon-si 16227, Republic of Korea

Sustainability, 2025, vol. 17, issue 5, 1-25

Abstract: The digital economy is crucial in facilitating cities’ green and low-carbon transformations, balancing economic growth with environmental sustainability. However, its role in mitigating urban carbon emissions remains underexplored in existing research. This study examines how digital economy technologies contribute to carbon emission reduction by integrating circular economy theory and behavioral economics theory. Based on expert interviews and a systematic literature review, the research applies the Decision-Making Trial and Evaluation Laboratory and Interpretive Structural Modeling (DEMATEL-ISM) methodology to identify 13 key factors driving urban low-carbon transitions. The findings highlight that circular economy-driven digital transformation, digital infrastructure development and e-commerce and logistics optimization are pivotal for reducing urban carbon emissions. This study offers theoretical insights into the digital economy’s role in low-carbon urban development. It also provides practical guidance for policymakers, urban managers and businesses. These strategies can enhance energy efficiency, reduce carbon emissions and promote urban ecological sustainability.

Keywords: digital economy; DEMATEL-ISM model; low-carbon urban transition; circular economy theory; behavioral economics theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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