A study of the impact of the digital economy on regional energy efficiency

Abstract

The digital economy, emerging as a new form of economic system, holds a crucial position in enhancing energy efficiency. It does so by streamlining the distribution of resources with the help of data and augmenting the flow efficiency of production factors. This paper examines the precise role and mechanism of the digital economy in enhancing energy efficiency from both theoretical and empirical perspectives. This paper utilises panel data from China's provinces and cities over a fifteen-year period, ranging from 2006 to 2021. The fixed-effects model is employed to investigate the precise pathway in which the level of digital economy development influences energy efficiency. The study reveals that the digital economy has a notable impact on enhancing energy efficiency. The analytical mechanism indicates that the digital economy effectively improves energy efficiency by advancing regional marketisation, optimising the industrial structure, and fostering innovation and the adoption of new technologies. Owing to considerable disparity among diverse parts of China, the digital economy seems to have a positive impact on the eastern and central regions, while its influence remains restricted in the western regions. Meanwhile, the areas encompassed by the Yangtze River Economic Belt are the most viable for advancement in energy efficiency through the digital economy. The influence of the digital economy on energy efficiency is markedly inconsistent due to the considerable variation in resource allocation among various regions. The role of the digital economy in enhancing energy efficiency is particularly evident in regions with moderate resource endowment. Thus, this study contends that realisation of the digital economy's capacity requires the government to consider the regional development disparities and resource endowment circumstances. To achieve balanced regional growth and comprehensive progress in energy efficiency, the government must develop tailored policies that promote marketisation, optimise industrial structure, and incentivise technological advancement. Therefore, the implementation of these measures is crucial.