Nonlinear impact of digital economy on carbon intensity: the moderating role of low-carbon regulation

The development of the digital economy is an effective way to mitigate the carbon emission problem in the broader setting of the significant data era and green development. Based on the panel data of 271 cities in China from 2011 to 2019, this paper constructs a bidirectional fixed model to analyze the nonlinear effect of the digital economy (DE) on carbon intensity (CI) and the moderating role of low-carbon regulation from theoretical and empirical perspectives. The results show that (1) DE has an enormous inverted U-shaped impact on CI. The findings remain after introducing instrumental variables to mitigate endogeneity and robustness tests. (2) Low-carbon regulation (CP) can strengthen the inverted U-shaped impact between the two and shift the inflection point to the left. (3) Heterogeneity analysis shows that the inverted U-shaped effect of DE on CI is more significant in the central and western regions, high human capital (HC) regions, and high urbanization regions. (4) The mediating effect of energy mix (EM) and green technology innovation (GTI) still hold after introducing instrumental variables to alleviate the endogenous effect of the intermediary effect. This study suggests that the adoption of carbon emission reduction strategies, which will more effectively lower carbon intensity CI, should go hand in hand with the development of DE.