The inverted U-shaped impact of the digital economy on indirect household carbon emissionsan empirical study based on CFPS

Ying Chen ^* Donglin Chen Chenfeng Gao

• Wuhan University of Technology, Wuhan, China

In the era of the booming digital economy and global efforts to cut carbon emissions, this study analyzes how digital economy growth affects indirect household carbon emissions (IHCEs). Using data from the 2014 -2018 China Family Panel Studies (CFPS), a fixed effects model is applied to explore this relationship across regions, different digital economy development levels, and consumption categories. The results show a notable inverted U -shaped link between the digital economy and IHCEs. Initially, as the digital economy starts to grow, IHCEs rise because of more consumption of energy -intensive products. But as digital tech matures, emissions decline thanks to improved efficiency and sustainable consumption. Heterogeneity analysis reveals differences. In less developed digital economy areas, the inverted U -shape is clear, while in advanced ones, the relationship isn't significant. Regionally, the eastern region, with advanced infrastructure and green tech, curbs IHCEs. The central region promotes them, and the western region shows an inverted Ushape. For consumption, digital economy impacts housing and food emissions significantly, while other categories have mixed or minor effects. These findings are crucial for policymakers. They should adopt region -specific strategies, invest in digital infrastructure, and encourage sustainable consumption to use the digital economy for carbon reduction.