Impact Of Digital Economy On Carbon Emission Intensity: The Moderating Effect Of FDI

Liheng Chi

doi:10.54097/7msyxw95

Authors

Liheng Chi

DOI:

https://doi.org/10.54097/7msyxw95

Keywords:

Digital economy, foreign direct investment, carbon intensity, mediating effect, inverted U-shaped relationship.

Abstract

The rapid and widespread development of digital economy has given renewed impetus to efforts to peak and reduce carbon emissions, and has heralded significant changes in the energy sector. In this paper, panel data of 70 major countries from 2010 to 2019 are selected as samples, and an indicator system is constructed to measure the level of digital economy development in each country using the entropy weight method to study the development status of digital economy development and carbon emission intensity in each country. This research utilizes a regression model incorporating curve moderating effects to investigate how the carbon emission intensity is influenced by the digital economy, while also considering the moderating influence of foreign direct investment (FDI). The findings unequivocally confirm the presence of a noteworthy U-shaped relationship between the digital economy and carbon emissions. As the digital economy progresses, it moves from supporting to reducing carbon emissions. Improving FDI plays a critical part in regulating the digital economy's relationship to carbon intensity. The shape of the curve is flattened by the moderating effect of FDI. Based on the obtained conclusions, the paper puts forward targeted recommendations in order to curb carbon emissions and further improve the ecological environment.

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