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<p>Digital Technology Innovation (DTI) is crucial in facilitating carbon emissions reductions. This study explores how DTI affects CO<sub>2</sub> emissions through the lens of factor-biased technical progress (FBTP) under variable elasticity of substitution, utilizing data from 275 Chinese cities spanning from 2006 to 2021. The results reveal: (1) DTI exerts a reverse U-shaped impact on CO<sub>2</sub> emissions, which withstands robustness checks and tests for endogeneity; (2) DTI fosters carbon emission reductions by encouraging capital-biased, high-skilled labor-biased, and clean energy-biased technical progress, particularly when production factors are substitutable; (3) the inverted U-shaped effect is pronounced in cities characterized by high industrial output, effective utilization of dirty energy, and stringent environmental regulations, but it is not significant in urban areas characterized by low industrial output, inefficient use of dirty energy, and lax environmental regulations. Based on these findings, we recommend promoting DTI alongside capital-biased, high-skilled-labor-biased, and clean-energy-biased technical progress, and advocating for tailored policy measures across different cities to enhance carbon emission reduction efforts.</p>

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Study the relationship between digital technology innovation, factor-biased technical progress, and CO2 emissions under variable elasticity of substitution

  • 期刊论文

  • 发表日期：

    2025年5月6日

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  • Zhenzhen Liao,
  • Shaofeng Ru

摘要

Digital Technology Innovation (DTI) is crucial in facilitating carbon emissions reductions. This study explores how DTI affects CO2 emissions through the lens of factor-biased technical progress (FBTP) under variable elasticity of substitution, utilizing data from 275 Chinese cities spanning from 2006 to 2021. The results reveal: (1) DTI exerts a reverse U-shaped impact on CO2 emissions, which withstands robustness checks and tests for endogeneity; (2) DTI fosters carbon emission reductions by encouraging capital-biased, high-skilled labor-biased, and clean energy-biased technical progress, particularly when production factors are substitutable; (3) the inverted U-shaped effect is pronounced in cities characterized by high industrial output, effective utilization of dirty energy, and stringent environmental regulations, but it is not significant in urban areas characterized by low industrial output, inefficient use of dirty energy, and lax environmental regulations. Based on these findings, we recommend promoting DTI alongside capital-biased, high-skilled-labor-biased, and clean-energy-biased technical progress, and advocating for tailored policy measures across different cities to enhance carbon emission reduction efforts.