China's digital economy is booming, but there's a hidden cost. The rapid growth of digital sectors is driving up demand for coal-based electricity. This, in turn, is pumping out a lot of CO2, contributing to climate change. The tricky part is that the exact sources of these emissions within the supply chain are not clear. This makes it hard to target and manage carbon output effectively.

To tackle this issue, a detailed study was conducted. It looked at CO2 emissions from various angles: income, production, betweenness, and consumption. It also considered both the upstream and downstream parts of the supply chain. The study used complex frameworks and analysis methods to get a comprehensive view.

The findings were interesting. The core industry sector of the digital economy tops the list for consumption-based CO2 emissions. However, the industrial digitalization sector leads in both consumption and betweenness-based emissions. This means that while some sectors consume more, others play a bigger role in connecting different parts of the supply chain.

The study also found that inter-provincial flows are a major driver of consumption-based emissions. In other words, the movement of goods and services between provinces contributes significantly to CO2 output. On the income side, labor compensation is the primary source of enabled CO2 emissions. This suggests that how workers are paid and where they live can impact carbon output.

Another key finding is that high-carbon supply chains driven by the digital economy are relatively short. The power and heat production sector, along with the industrial digitalization sector, play crucial roles in these chains. This means that focusing on these sectors could have a big impact on reducing emissions.

So, what can be done? The study suggests several policy recommendations. Optimizing supply chain structures could help reduce emissions. Promoting green consumption could also make a difference. Integrating carbon management into sector-specific strategies could address emissions across both upstream and downstream paths.

It's clear that the digital economy has a significant carbon footprint. But with the right strategies, it's possible to mitigate this impact. The key is to understand the sources of emissions and target them effectively. This way, the digital economy can continue to grow without harming the environment.

China's Digital Economy: The Hidden Carbon Footprint

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