Digitalization is driving the Industry 4.0 transformation globally. By establishing a multiple linear regression model that integrates the digital economy, environmental regulation, and carbon emissions into a unified analytical framework, the mechanism through which environmental regulation influences carbon reduction was explored. Furthermore, it investigates the moderating role of digitalization between the two and presents an intuitive analysis. The results indicate a significant inverted “U”-shaped relationship between environmental regulation and carbon emissions. The digital economy exhibits a green effect by reducing carbon emissions. The digital economy reverses the relationship between environmental regulation and carbon emissions, effectively moderating the “green paradox”, and regions with high intensities of environmental regulation are more likely to leverage the moderating role of the digital economy.

digital economy  /  environmental regulation  /  carbon emissions  /  moderating effect