How digital platforms will impact carbon emissions? New insights based on 257 cities in China

Amid the swift expansion of the digital economy, digital platforms (DP) are emerging as crucial organizational entities in the new era. They are becoming more significant in the effort to decrease carbon emissions (CE). This research intends to investigate the influence of DP on reducing CE and the mechanisms involved, using panel data from 257 cities at the prefecture level and higher in China covering the period from 2014 to 2020. The results show that DP significantly contribute to decreasing CE, a conclusion supported even after employing topographical data selection as an instrumental variable and conducting various robustness tests. The study of the mechanisms demonstrates that DP’ facilitation of CE reduction can be attributed to three essential elements: industrial upgrading, technological innovation, and resource allocation. Heterogeneity analyses reveal that DP exert a more pronounced impact on CE reduction in large cities, inter-provincial border cities, and service-oriented cities. Additionally, this study emphasizes the significance of public scrutiny in enhancing the function of DP in advancing CE reduction, while policy-based oversight does not yield the same effect. Overall, this research enhances the theoretical discussion on the nexus between DP and CE reduction. It also provides valuable insights for the scientific use of digital technology to propel future CE reduction efforts.