Can the development of the digital economy reduce industrial solid waste pollution?

Abstract

Constraining industrial solid waste emissions is essential to achieving net-zero carbon emissions. Exploring how to reduce industrial solid waste pollution in the Industry 4.0 era is of great importance. This study investigates the impact of digital economic development on industrial solid waste pollution and its underlying mechanisms using a two-way fixed-effects model, with panel data from 30 provinces in China from 2011 to 2022. The results reveal a non-linear relationship between digital economic development and industrial solid waste pollution, showing an inverted “U” curve, which aligns with the traditional Environmental Kuznets Curve. The estimated inflection point of inverted “U” curve is 0.653, while the existing level of digital economic development is much less than it, revealing the current stage of China's digital economy has yet to demonstrate a significant inhibiting effect on industrial solid waste pollution. Mechanism analysis indicates that the digital economy influences industrial solid waste pollution through regional factor allocation efficiency and technological progress. Additionally, further analysis shows that upgrading the industrial structure and developing green finance can expedite the inflection point, allowing the digital economy's pollution-reducing effects to manifest earlier. This research provides implications for digital economic development and industrial solid waste pollution reduction.