How can the digital economy drive low-carbon city performance in China to achieve sustainable development goals? A multiple-output perspective

Under the dual carbon target, governments globally have recognized the importance of exploring the relationship between the digital economy and low-carbon city (LCC) performance for achieving sustainable development. However, existing studies primarily focus on a single carbon emission index to reflect LCC performance while neglecting multidimensional outputs. This study aims to analyze how the digital economy drives LCC performance from a multidimensional output perspective. Based on 271 Chinese cities from 2006 to 2020, this study establishes a comprehensive digital economy index, and a multidimensional output index of LCC performance, then analyzes digital economy's impact on LCC performance through fixed effects and intermediary effects models. The findings indicate that: (1) Nationally, the digital economy has the potential to significantly decrease both overall and intensity of carbon emissions while increasing LCC efficiency. (2) Digital economy influences LCC development through innovation in green technology indirectly. (3) The digital economy's effects on LCC exhibits heterogeneity depending on city location, city size and city type. Specifically, it shows a greater effect on the decrease of carbon emissions in the eastern and central regions, exerts a bigger impact on small and medium-sized cities based on city size, and demonstrates a more substantial effect in resource-based cities. This study offers a thorough analysis of how the digital economy affects LCC performance, thereby providing empirical support for leveraging the digital economy's potential to foster urban low-carbon development.