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Research Article Open access CC BY 4.0

Explore the Impact of the Digital Economy on Carbon Emission Reduction in the Yangtze River Delta Region

Xinlong Zhang

Asian Journal of Economics, Business and Accounting · pp. 29–40 · Published 25 Aug 2025

10.9734/ajeba/2025/v25i91954

Abstract

Abstract: The digital economy has emerged as a crucial driver of economic growth and transformation in recent years. This paper aims to investigate the impact of the digital economy on carbon emission reduction in the Yangtze River Delta region. Based on the measurement of the digital economy index, this study investigates the impact of the digital economy on carbon emission reduction in 41 cities of the Yangtze River Delta region from 2011 to 2021 using the two-way fixed effects model and the mediating effect model. The study finds that: (1) The digital economy can promote carbon emission reduction in the Yangtze River Delta region, and the results are robust. (2) The digital economy can reduce carbon emissions through the mediating effect of reducing energy intensity. (3) The impact of the digital economy on carbon emission reduction in the Yangtze River Delta region has dual threshold effects of environmental regulation and capital misallocation, and the role of environmental regulation and capital misallocation in curbing carbon emissions shows a trend of first strengthening and then weakening.

Digital economy carbon emissions Yangtze River Delta region

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