Digital economy, industrial transformation and upgrading, and spatial transfer of carbon emissions: The paths for low-carbon transformation of Chinese cities

Under the background of increasingly fierce global economic competition and severe climate change, seeking new soft resource input is the key for China to break through the bottleneck of economic transformation. Based on the data from 278 Chinese cities from 2006 to 2019, multi-dimensional empirical tests were conducted to investigate the relationship between digital economy (DE) and spatial transfer of carbon emissions (CE). The results show that DE directly reduced CE. Mechanism analysis shows that DE reduced CE through local industrial transformation and upgrading (ITU). Spatial analysis shows that DE reduced local CE while aggravating neighboring CE. The spatial transfer of CE was attributed to the fact that when DE promoted the local ITU, it induced the transfer of the backward and polluting industries to neighboring regions, resulting in the spatial transfer of CE. Moreover, the spatial transfer effect of CE was maximum at 200 km. However, in recent years, rapid DE development has weakened the spatial transfer effect of CE. The results can provide insights into understanding the carbon refuge effect of industrial transfer in China in the context of DE and facilitate formulating appropriate industrial policies to promote inter-regional carbon reduction synergy. Thus, this study can provide a theoretical reference for achieving the dual-carbon target of China and the green economic recovery of other developing countries.