Digital economic development and carbon emissions: A literature review

Abstract

In the digital era, the development of the digital economy has gained significant practical importance for enhancing reductions in carbon dioxide (CO₂) emissions. However, existing studies must clarify the key “hidden” mechanisms driving actual changes in CO₂ emissions. Although both the digital economy and CO₂ emissions are widely researched topics, previous literature has rarely provided an explicit examination of their underlying mechanisms. This study conducts a detailed literature review and finds that the digital economy affects CO₂ emissions through four main channels: technical, structural, resource allocation, and spatial spillover. However, these channels should not be examined independently due to their interactive effects. Moreover, each of these four channels can be further subdivided, making it essential to explore the subpaths and interconnections among them. By offering a more nuanced understanding of how the digital economy contributes to CO₂ emissions reduction, this study provides valuable insights that can inform strategic policy development.