Agglomeration Impacts of the Digital Economy and Water-Conservation Technologies on China’s Water-Use Efficiency

This study explores the potential connections between the digital economy and water conservation technologies in the context of China’s water resource consumption from 2008 to 2021. The research employs a state-of-the-art M-MQR technique, including the PCA index, and yields several significant findings. Empirical results reveal that digital technologies play a crucial role in reducing water consumption: Mobile technology decreases water use by −0.00001 to −0.00002 across quantiles, while internet access cuts consumption by −0.0000306 at lower quantiles and −0.0000167 at higher quantiles. The digital economy index shows an overall reduction in water consumption of −0.0537 at lower quantiles and −0.0292 at higher quantiles. Water conservation technologies, such as sprinkler irrigation, also contribute significantly, with reductions of −0.005 at the 10th quantile. Furthermore, water-saving investments show a positive effect on reducing water consumption, with reductions of −0.0105 at the 95th quantile. The study emphasizes that digitalization moderates the impact of water-saving technologies, reducing consumption by −0.0124 to −0.0118 at lower quantiles and −0.00812 to −0.00761 at middle quantiles. These results highlight the potential of digital infrastructure and water-saving investments to improve water use efficiency and address China’s water resource challenges. This study proposes that digital water supply and distribution system devices can help develop smart water infrastructure, reduce waste, and improve efficiency.