Impact of digital economy on energy efficiency: Role of emerging technologies such as AI

Quan-Jing Wang, Yi-Jing Zhu, Yun Zhang and Chun-Ping Chang

Energy Economics, 2025, vol. 150, issue C

Abstract: This study mainly examines the impact of digital economy on energy efficiency by employing country-level data for 69 countries from 2003 to 2019. The GMM estimating results suggest that digital economy is beneficial for improving energy efficiency, which is reliable while we conduct several robustness tests by re-doing estimation based on new sample, as well as changing the measurement of digital economy and energy efficiency. Furthermore, industrial structure, populations, international trade and carbon dioxide emissions would change positive implication of the digital economy for improving energy efficiency. Moreover, technologies for ICT and climate change mitigation would benefit for the positive implication of the digital economy for improving energy efficiency, while technologies for artificial intelligence would weaken it. Additionally, positive implication of the digital economy for improving energy efficiency is stronger among Emerging Markets and parliamentary democratic countries than their counterparts, while it is lower among the right-wing political regimes and RCEP countries. Finally, digital economy can improve energy efficiency by promoting energy innovation, environmental innovation, renewable energy consumption and share of clean energy.

Keywords: Digital economy; Energy efficiency; AI; Energy innovation; Renewable energy (search for similar items in EconPapers)
JEL-codes: H11 P48 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:150:y:2025:i:c:s014098832500667x

DOI: 10.1016/j.eneco.2025.108840

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