Has Digital Industrialization Promoted Carbon Emission Reduction in the Construction Industry?

Ya-Li Liu, Jin-Rong Zhang () and Hong-Bo Li ()
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Ya-Li Liu: School of Business and Tourism Management, Yunnan University, Kunming 650091, China
Jin-Rong Zhang: School of Public Administration, Huazhong Agricultural University, Wuhan 430070, China
Hong-Bo Li: School of Public Administration, Huazhong Agricultural University, Wuhan 430070, China

Sustainability, 2025, vol. 17, issue 7, 1-23

Abstract: Mitigating carbon emissions in the construction sector is crucial for attaining the objectives of “carbon peak” and “carbon neutrality”. This research utilizes panel data from 30 Chinese provinces spanning 2011 to 2020, employing a two-way fixed-effect model and a mediation-effect model to quantitatively assess the impact of digital industrialization (DI) on carbon emissions within this industry. The findings indicate that DI notably decreases carbon emissions; however, its effectiveness is structurally imbalanced. Digital services (DI-S) have a more pronounced effect on reducing emissions than digital technologies (DI-T). Notably, DI significantly lowers indirect carbon emissions but has a minimal positive impact on direct emissions in construction. Mediation analysis shows that DI greatly enhances green innovation capabilities (GIC) and green financial services (GFS), indirectly contributing to emission reductions, evidencing a full mediation effect. This process underscores the role of DI in promoting green technological innovation and financial development, thereby supporting the sector’s low-carbon transformation.

Keywords: digital industrialization; construction industry carbon emissions; two-way fixed-effect model; mediation-effect model (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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