Impact of digital economy on co-benefits of air pollution reduction and carbon reduction: Evidence from Chinese cities

Pursuing co-benefits of air pollution reduction and carbon reduction (co-benefits) is an inevitable choice for the green development of China, with the digital economy (DE) presenting a viable novel opportunity. This study, based on data from 284 prefecture-level cities in China spanning from 2011 to 2021, examines the impact and full chain mechanisms of the DE on co-benefits. The results indicate that both the DE and co-benefits show an increasing trend. A distinct 'east-high, west-low' gradient distribution is observed. The DE significantly enhances co-benefits, with a 0.41 % increase in co-benefits resulting from a 1 % increase in the DE. Heterogeneity analysis reveals that the DE has a more pronounced impact on the carbon reduction effect. For cities located southeast of the Hu-Huanyong Line, urban agglomerations with high levels of integration, and non-resource-based cities, the promoting influence of the DE on co-benefits is stronger. Mechanism analysis indicates that the DE comprehensively enhances co-benefits by reducing energy intensity at the source, increasing public environmental appeal throughout the process, and improving air pollution and carbon emission efficiency through end treatment. Our research offers empirical support and decision-making references for enhancing co-benefits by leveraging the advantages of the DE.