Impact of Digital Economy on Energy Consumption and Energy Efficiency

Driven by innovations in digital technologies, the digital economy is reshaping societal production and consumption patterns, exerting systematic effects on the energy system through the digital transformation of both the supply and demand sides of energy. Based on empirical analysis using provincial panel data from China between 2011 and 2022, this study demonstrates that the development of the digital economy significantly suppresses the scale of energy consumption while simultaneously improving energy utilization efficiency. After applying the instrumental variable method (with the interaction term of fixed-line telephones and information technology service revenue as the IV) and conducting multiple robustness checks (including lagged explanatory variables, variable substitution, sample trimming, and additional control variables), the core conclusion remains statistically significant. Mechanism tests reveal that the collaborative effects of green technological innovation, the upgrading of industrial structure, and digital inclusive finance form the key transmission path. Finally, heterogeneity analysis shows that the impact of the digital economy on energy consumption and energy efficiency is particularly pronounced in western regions, demonstrating significant regional heterogeneity.

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Publication Details

Journal
Sustainability
Published
2025-12-03
DOI
https://doi.org/10.3390/su172310831
Primary Topic
Energy, Environment, Economic Growth
Type
article
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article

Impact of Digital Economy on Energy Consumption and Energy Efficiency

Ching-Wei Ho, Jin‐Shy Tsai
Sustainability
Energy, Environment, Economic Growth
article

Impact of Digital Economy on Energy Consumption and Energy Efficiency

Ching-Wei Ho, Jin‐Shy Tsai
article en

Abstract

Driven by innovations in digital technologies, the digital economy is reshaping societal production and consumption patterns, exerting systematic effects on the energy system through the digital transformation of both the supply and demand sides of energy. Based on empirical analysis using provincial panel data from China between 2011 and 2022, this study demonstrates that the development of the digital economy significantly suppresses the scale of energy consumption while simultaneously improving energy utilization efficiency. After applying the instrumental variable method (with the interaction term of fixed-line telephones and information technology service revenue as the IV) and conducting multiple robustness checks (including lagged explanatory variables, variable substitution, sample trimming, and additional control variables), the core conclusion remains statistically significant. Mechanism tests reveal that the collaborative effects of green technological innovation, the upgrading of industrial structure, and digital inclusive finance form the key transmission path. Finally, heterogeneity analysis shows that the impact of the digital economy on energy consumption and energy efficiency is particularly pronounced in western regions, demonstrating significant regional heterogeneity.

SustainabilityVol. 17(23)
Feng Chia University (TW)
Openalex Percentile: Top 55%
Energy, Environment, Economic Growth
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Impact of Digital Economy on Energy Consumption and Energy Efficiency — Ching-Wei Ho, Jin‐Shy Tsai · Sustainability (2025) | TGRS Research Map | TGRS