Exploring the impact of digital economy on energy transition: Insights from natural resource rent dynamics

Digital economy is of great significance for countries to achieve energy transformation and sustainable development. However, the limited nature of natural resources has affected the development of digital economy. Although the research on digital economy and energy transition is increasing, few studies systematically link digital economy to energy transition from the perspective of natural resource rent. The FMOLS line regression and threshold nonlinear regression approaches are developed to quantify the linear and non-linear impact of digital economy on energy transition. The results of the linear model demonstrate that digital economy plays a more substantial role in driving energy transition in high-income countries compared to low- and middle-income countries. Furthermore, there exists a threshold effect of natural resource rents on the impact of digital economy on energy transition. In cases where natural resource rents are low, the development of digital economy significantly promotes energy transition. Robustness tests, such as shortening the sample period and increasing control variables, confirm the reliability of regression findings. This study contributes by uncovering regional heterogeneity in the relationship between digital economy development and energy transition. Particularly for low- and middle-income countries with low natural resource rents, fostering digital technology’s positive impact on energy transition yields higher marginal benefits. High-income countries should continue investing in innovation and research and development for sustainable energy technologies, while low- and middle-income nations should seek international financial support and investment while maintaining minimal reliance on natural resources to harness the potential advantages offered by digital technologies.