The Impact of Digital Economy on Total Factor Energy Efficiency from the Perspective of Biased Technological Progress

Enhancing Total Factor Energy Efficiency (TFEE) is pivotal for achieving China’s “dual carbon” goals and navigating the global challenge of sustainable development. The Digital Economy (DE) serves as a significant driver of TFEE improvement. However, China’s rapid industrialization has exacerbated energy insecurity and environmental degradation, highlighting the need to explore how the DE can address these challenges through biased technological progress. Building on panel data from 282 prefecture-level cities in China (2011–2022), this study employs the theory of biased technological progress to empirically examine the impact of the DE on TFEE from dual perspectives: skill-biased versus task-biased technological change. The findings reveal that the DE significantly enhances TFEE, a conclusion robust to rigorous testing and endogeneity controls; the DE primarily promotes TFEE through facilitating human capital and industrial transformation; the positive effect of the DE on TFEE is particularly pronounced in eastern and western regions, as well as in areas exhibiting moderate energy dependence; and the DE not only elevates local TFEE but also generates positive spatial spillover effects that significantly improve TFEE in neighboring regions. This study provides a framework for leveraging digitalization to enhance TFEE, with implications for policy design in developing countries pursuing sustainable transitions.