Politická ekonomie 2025, 73(2) Special Issue I:243-274 | DOI: 10.18267/j.polek.1488

Inverted U-shape Impact of China's Manufacturing Digitization on Low-carbon Environmental Governance Performance

Xuegang Zhan ORCID...1, Rita Yi Man Li ORCID...2, Jing Xia ORCID...3
1 Chongqing Technology and Business University, School of Accounting, Chongqing, PR China
2 Hong Kong Shue Yan University, Sustainable Real Estate Research Centre/Department of Economics and Finance, Hong Kong, Hong Kong SAR, China
3 Chongqing Technology and Business University, School of Accounting, Chongqing, PR China

Too much of a good thing can ultimately become detrimental. Is this the case in the manufacturing industry's carbon governance under the guise of digitization? This study examines the non-linear effect of low-carbon environmental governance at the provincial level in China's manufacturing sector which is the first of its kind. Using the slacks-based measure data envelopment approach (SBM-DEA), this study assesses changes in environmental governance performance over time, accounting for desirable and undesirable outputs. The findings indicate an inverted U-shaped relationship between manufacturing digitization and low-carbon environmental governance performance in China. This suggests that digitization improves environmental outcomes initially, but excessive digitization causes adverse environmental impacts due to increased energy use, resource depletion and waste production. It offers insights into the complicated interplay of benefits and challenges in manufacturing digitization and its implications for achieving sustainable, low-carbon development in China. It highlights the importance of thoughtful digital transition to support low-carbon development goals.

Keywords: Manufacturing digitization, low-carbon environmental governance, U-shape, performance
JEL classification: L16, O14, O33

Vloženo: 25. leden 2024; Revidováno: 4. prosinec 2024; Přijato: 14. leden 2025; Zveřejněno online: 27. únor 2025; Zveřejněno: 29. duben 2025  Zobrazit citaci

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Zhan, X., Yi Man Li, R., & Xia, J. (2025). Inverted U-shape Impact of China's Manufacturing Digitization on Low-carbon Environmental Governance Performance. Politická ekonomie, 73(Spec.issue I.), 243-274. doi: 10.18267/j.polek.1488
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