Does Internet Development Put Pressure on Energy-Saving Potential for Environmental Sustainability? Evidence from China

Siyu Ren, Zhiyuan Liu, Rinat Z Hanbayev and Mingyue Du
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Siyu Ren: School of Economics, Nankai University, Tianjin, China
Zhiyuan Liu: Carey Business School, The Johns Hopkins University, Baltimore, USA
Rinat Z Hanbayev: Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin, Turkey
Mingyue Du: School of Economics, Beijing Technology and Business University, Beijing, China

Journal of Economic Analysis, 2022, vol. 1, issue 1, 49-65

Abstract: With the development of information technology and its application in environmental governance, the role of the internet in improving energy efficiency and reducing energy-saving potential (ESP) has attracted more attention. In this study, the slack-based model (SBM) and the unexpected model, along with the entropy method, were applied to measure China's energy-saving potential and internet development. Further, we empirically analyzed the direct effect, mediating effect, threshold effect, and regional heterogeneity of the internet on ESP. Our conclusion shows that there is a significant spatial correlation between internet penetration and ESP. Internet penetration has become an important tool for reducing ESP, but this effect shows regional heterogeneity. Human capital accumulation, financial development, and industrial upgrading are important influencing mechanisms, but indirect effects are weaker than direct effects. The impact of internet penetration on ESP is non-linear, and for improving human capital accumulation, financial development, and industrial upgrading, the role of internet popularization in energy conservation is more obvious.

Keywords: Internet development; Energy-saving potential; Threshold panel model; Spatial Durbin model (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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