A study on the potential of digital economy in reducing agricultural carbon emissions

Abstract

Agriculture is a significant source of carbon emissions, which have a substantial environmental impact. The digital economy plays a vital role in mitigating these emissions through innovative digital solutions. As a leading agricultural nation, China faces substantial pressure to reduce its agricultural carbon emissions(ACE). This paper aims to thoroughly examine the relationship between the growth of the rural digital economy and ACE. To achieve this, we utilize an extensive panel dataset covering China's provinces from 2011 to 2020, analyzing the dynamic and spatial effects of digital economy development on ACE. The key findings of this research are as follows: (1) The rapid expansion of the digital economy significantly reduces ACE. (2) The impact of digital economic development on lowering ACE varies spatially, with a clear progression from eastern to western regions. (3) The digital economy helps reduce ACE through three specific channels: fostering technological innovation, enhancing scale efficiency management, and providing agricultural financial incentives. Based on these findings, this study proposes policy recommendations to improve digital infrastructure, promote balanced regional development in the digital economy, and optimize the management of agricultural science and technology. These policy insights aim to transform agriculture and achieve the goal of reducing ACE, thereby contributing to broader environmental sustainability.

Keywords

• Digital economy
• Agricultural carbon emissions
• Fixed effects model
• Mechanism analysis