How does digital transformation affect high-quality development of China's power industry

Ruifang He, Xianchun Liao and Yujie Xu

Renewable and Sustainable Energy Reviews, 2025, vol. 217, issue C

Abstract: Digital transformation and high-quality development have become inevitable trends in the energy sector, but in-depth research on the power industry has not been conducted. This study constructs a comprehensive index system for the high-quality development of the power industry (HDPI) in China, and estimates the relationship between digital transformation and the HDPI by using the panel quantile regression model, SYS-GMM model and panel threshold model, respectively. Based on empirical testing using panel data of 30 provinces from 2009 to 2021, the research in this study draw several conclusions. First, China's HDPI was at a low level, but showed a significant and rapid upward, and showing a trend of balanced development across the eastern, central, and western regions. Second, digital transformation significantly boosts the HDPI at different percentile points, and the positive effects are stronger in regions with higher HDPI. Third, digital transformation positively impacts the HDPI by promoting green technology innovation. In addition, the positive impact of digital transformation on the HDPI is also influenced by the threshold effect of environmental regulation, where tightening the environmental regulations leads to the positive contribution effect of digital transformation on the HDPI being more prominent. Following the findings, it is therefore the current study proposes a series of policy recommendations to accelerate digital transformation and promote HDPI in China.

Date: 2025
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DOI: 10.1016/j.rser.2025.115789

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