ABSTRACT
China has pledged to peak its carbon dioxide emissions (CEM) before 2030 and achieve carbon neutrality before 2060. The energy consumption related to land urbanization (LURB) and internet penetration (INT) may have a significant impact on CEM. It is critical for China to obtain a better understanding of the interaction among them in order to tackle challenges of climate change in the digital era. Initially, the multivariate panel bootstrap Granger causality test is conducted to estimate the causal effects of LURB and INT on CEM in China. The results reveal that the interaction patterns among them varied across different provinces, and particularly LURB and INT are two determinants of CEM mainly in Eastern China, which is consistent with the stochastic differential model. Then, CEM is not a Granger-cause of LURB and INT in the majority of Chinese provinces, as LURB and INT largely depend on government policies and industrial development. In addition, there are no significant interactions between LURB and CEM in over two-thirds of the provinces and there are also none between INT and CEM in over half of the Chinese provinces. Therefore, Chinese policymakers should further adopt differentiated and efficient policies targeting the weak links and achieve environmental sustainability through low carbon transition.
