Driving the Green and Low-Carbon Economy Through Digital Innovation: Insights from China's Inclusive Carbon Benefit Mechanism

Abstract

Climate change mitigation requires not only industrial transformation but also behavioral shifts at the consumer level. This systematic analysis examines China's pioneering inclusive carbon benefit policies, which integrate digital technologies to incentivize low-carbon behaviors among individuals and small- to medium-sized enterprises. Since the concept's inception in 2009, carbon inclusion has evolved into a national strategy, formally recognized in China's 2022 climate policy framework. This analysis synthesizes policy developments, standardization efforts, and practical implementations across 39 case studies, categorizing them into government-led, firm-led, and hybrid models. Findings highlight that diversified, government-guided mechanisms with active private sector participation are the most effective in promoting sustained green behavior, enhancing public engagement, and contributing to China's dual carbon goals of achieving carbon peak by 2030 and carbon neutrality before 2060 (hereafter referred to as "dual carbon goals"). The integration of digital platforms, standardized emission accounting, and incentive structures has transformed voluntary actions into measurable carbon assets. The study also explores emerging practices in advanced carbon accounting, including the concept of Scope 4 emissions, and evaluates China's role in setting global precedents for digitalized carbon neutrality frameworks. Challenges such as inconsistent standards, limited market incentives, and integration barriers are discussed, alongside recommendations for policy enhancement and broader application. In conclusion, China's carbon inclusive approach demonstrates a scalable model for fostering green lifestyles through multi-stakeholder collaboration and digital innovation. This mechanism offers valuable insights for global efforts in consumer-end emission reduction and highlights the critical role of behavioral change in achieving climate targets. It will contribute to advancing digitalized climate governance and offer practical insights for policymakers worldwide.

Received: 26 April 2025 | Revised: 6 August 2025 | Accepted: 19 September 2025

Conflicts of Interest

The authors declare that they have no conflicts of interest to this work.

Data Availiability Statement

Data sharing is not applicable to this article as no new data were created or analyzed in this study.

Author Contribution Statement

Li Zhang: Conceptualization, Writing – original draft, Writing – review & editing, Supervision, Funding acquisition. Dongjie Sun: Methodology, Software, Resources, Data curation, Funding acquisition. Lan Tao: Conceptualization, Writing – review & editing, Supervision, Funding acquisition. Jingzhe Ren: Methodology, Investigation, Project administration. Xue Yu: Validation, Formal analysis, Investigation, Writing – original draft, Visualization. Yizheng Zhang: Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Visualization. Fangyi Yang: Validation, Investigation, Writing – original draft. Hongying Zeng: Conceptualization.