The Impact of the Digital Economy on the Urban Total-Factor Energy Efficiency: Evidence from 275 Cities in China

Senhua Huang and Lingming Chen ()
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Senhua Huang: Department of Economics, School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Lingming Chen: Department of Economics and Statistics, School of Economics and Management, Xinyu University, Xinyu 338004, China

Sustainability, 2023, vol. 15, issue 4, 1-20

Abstract: The widespread application of new-generation information technology, such as big data and artificial intelligence, has promoted the development of economic and technological transformation and the deep integration of digital and real economies. The digital economy is an essential force of China in the new era and it is promoting China’s economic development in a high-quality way. In this study, we theoretically describe the mechanism of the digital economy that affects total-factor energy efficiency and empirically analyze the impact of digital economy development on total-factor energy efficiency using data from 275 cities at the prefecture level and above in China from 2011 to 2019. We found that the digital economy has significantly improved total-factor energy efficiency. We used instrumental variable estimation and the replacement of explanatory variables to test the robustness of our results, finding that our conclusions were valid. Technological innovation, industrial structure optimization, and resource misallocation improvement are the channels through which the digital economy affects total-factor energy efficiency. Resource misallocation at the city level as the intermediary variable was this paper’s research gap. Further research showed that the improvement effect of the total-factor energy efficiency in eastern regions and megacities was more evident under the influence of the digital economy. All regions in China should combine their resource endowments to further release the dividends of the digital economy, enabling it to best promote total-factor energy efficiency. The relevant departments of the government should also stimulate market demand and promote the deep integration and balanced development of the digital economy and energy industry in low-energy-efficiency cities.

Keywords: digital economy; total-factor energy efficiency; industrial structure; resource misallocation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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