Does Digital Transition Contribute to Green Transition or Over-consumption? An Empirical Study in the UK
Authors: Zhang Genghao 
Published: February 2023

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&lt;p&gt;&lt;span data-contrast=&quot;auto&quot;&gt;Energy poverty in less developed areas leads to increasing inequality issues during the era of climate change. Scholars discuss whether the adoption of industry 4.0 technologies ameliorates the situation of increasing greenhouse gas emissions (GHG), while governments appeal for twin transitions. However, limited research investigates the spatiality of how digital transition (DT) affects green transition (GT) directly and indirectly by using comprehensive index systems. Filling in this gap, my research creates a conceptual framework to illustrate effects of DT on GT from various perspectives including industrial productivity, clean energy (CE) structure and so on (see Figure 1 below). Based on this framework, I adopt OLS, ordinal logistic and multinomial regression methods to examine how digital capacities affect CE consumption and industrial-commercial GHG emissions per person (PP) across 374 local authorities (LAs) in the UK during 2010-2019. Results found that &lt;/span&gt;&lt;strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;LAs&amp;#160;with less gross value added (GVA) of production and construction sectors consume higher rates of&amp;#160;CE significantly.&lt;/span&gt;&lt;/strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;&amp;#160;&lt;/span&gt;&lt;strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;In contrast, ICT sectors accounting for a higher GVA proportion increase industrial GHG PP significantly&lt;/span&gt;&lt;/strong&gt; &lt;strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;and, indirectly, the GVA of ICT contributes to commercial GHG PP by improving GDP per capita significantly.&lt;/span&gt;&lt;/strong&gt; &lt;strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;These estimated effects of variables are illustrated in Figure 2.&amp;#160;&lt;/span&gt;&lt;/strong&gt;&lt;span data-ccp-props=&quot;{&quot;&gt;&amp;#160;&lt;/span&gt;&lt;/p&gt;
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&lt;p&gt;&lt;strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;Urban areas conducting service activities locally with higher income per capita take advantage of pollution in rural areas specialized in production sectors&lt;/span&gt;&lt;/strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt; (see 3-6)&lt;/span&gt;&lt;strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt;.&lt;/span&gt;&lt;/strong&gt;&lt;span data-contrast=&quot;auto&quot;&gt; My research provides various suggestions for four types of LAs (see Figure 7). LAs in the top left may need to decrease the number of polluting firms and adopt more renewable energy (e.g., wind power). LAs in the top right should decrease consumption of polluting products and improve energy efficiency. In addition, governments should transfer payment from urban areas to industrialized areas rather than increasing labor productivity; otherwise, the higher GDP per capita, the greater personal carbon footprint. LAs in the bottom right may improve industrial productivity to reduce GHG emissions. Lastly, LAs in the bottom left should preserve natural resources by imposing more climate-related taxes.&lt;/span&gt;&lt;/p&gt;
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