Control of Corruption, Digital Transformation, and Carbon Emissions: A Global Panel Analysis of Mediating and Threshold Effects

Abstract

This study examines how anti-corruption affects carbon emissions and investigates the mediating and threshold effects of digital economy development. Using panel data from 121 countries for 2012–2022, the study employs stepwise regression, mediation analysis, threshold regression, heterogeneity analysis, and a series of robustness tests. The findings indicate that anti-corruption significantly reduces carbon emissions. Digital economy development partially mediates this relationship, mainly through e-participation and internet use. Moreover, as digital economy development progresses, the emissions-reducing effect of anti-corruption becomes stronger, revealing significant threshold effects. The relationship also varies across geographical regions and between countries with and without a colonial legacy. These findings provide global panel evidence on the interconnected roles of anti-corruption and digital economy development in reducing carbon emissions. By integrating mediation and threshold analyses within a unified empirical framework, the study demonstrates that digital economy development functions not only as a transmission mechanism but also as a factor shaping the effectiveness of anti-corruption policies in reducing carbon emissions. The findings offer practical implications for policymakers by highlighting the importance of strengthening institutional governance and digital development strategies to achieve more effective and sustainable carbon reduction. These implications are particularly relevant for countries seeking to align governance reforms with digital transformation and environmental sustainability.