Reaching peak carbon emissions and achieving carbon neutrality will mean a broad and profound systemic transformation, which requires the concerted efforts of the whole society. The digital economy, emerging as a driving force for premium economic progress, is poised to play a crucial role in realizing carbon neutrality objectives. Utilizing panel data from provinces spanning 2010 to 2020, this study conducts an empirical investigation into how the digital economy facilitates the enhancement of industrial structures and contributes to reducing emissions, using a mediation effect model. The study also explores how the digital economy’s influence on carbon emissions differs between the eastern and central-western regions. The findings reveal a significant influence of the digital economy on carbon emissions, where the evolution of industrial structures acts as a key intermediate mechanism in the digital economy’s carbon emission effects. Importantly, the effect of the digital economy on carbon emissions is more significant in the central and western areas compared to the eastern regions. Consequently, the paper proposes these recommendations: (1) Accelerate the establishment of digital economy infrastructure while advancing the development and utilization of digital technologies;(2) Vigorously foster the upgrading of industrial structure and optimise industrial layout, and gradually eliminate highly polluting and low value-added enterprises; (3) It is advisable for the central and western regions to persist in amplifying their investments in the digital economy, and the eastern regions should carry out technological co-operation and knowledge transfer with the central and western regions.

Lu Haodong. Study on the Digital Economy Affects Carbon Emissions - Mediating Effects Based on Industrial Structure Upgrading. Academic Journal of Business & Management (2023) Vol. 5, Issue 26: 197-205. https://doi.org/10.25236/AJBM.2023.052630.

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